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Market Declines Further After More Banks Ban Credit Crypto Purchases

Bitcoin recovery was short lived as the price failed to break the USD 10,000 level. It came under renewed selling pressure and declined below USD 9,000.

The second largest cryptocurrency, Ethereum’s Ether also declined after failing to break the USD 1,000 resistance. It is currently trading below the USD 850 level and is struggling to hold the USD 800 support.

In a shocker earlier today, many major banks in the UK banned purchasing of bitcoin using credit cards. These banks include Lloyds Bank, Halifax and Bank of Scotland. This is a major setback since many traders in the UK make purchases of bitcoins using their credit cards.

In an explanatory note, Lloyd’s spokeswoman stated "We continually review our products and procedures and this is part of that."

Last Friday, Bloomberg reported that JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. said they’re halting purchases of Bitcoin and other cryptocurrencies on their credit cards.

This is a big move, coupled with cautions by regulators in the US, Russia and India. It would be interesting to see if other major banks follow and it they do ban purchasing of bitcoin using credit cards, the market may decline further.

BTC/USD was down by more than 11% to trade below USD 8,000. The next major support on the downside is near USD 7,400. Below the mentioned USD 7,400, the price could test the USD 7,000 support area. On the flip side, the price is facing a major resistance at USD 8,500.
If bitcoin buyers succeed in pushing the price above USD 8,500, there could be a recovery towards the USD 9,000 level. Above USD 9,000, the price may attempt to move back in the bullish zone.

ETH/USD is also facing a lot of selling pressure and is currently hovering near USD 800. A break below the mentioned level could ignite further declines toward the USD 750 support.

The third largest cryptocurrency in terms of market capitalization, ripple declined below the USD 0.8000 support. XRP/USD remains at a risk of more losses towards the USD 0.7000 level. Other altcoins such as LTC/USD was down roughly 10% to USD 141. NEO/USD is holding the USD 100 level, but it may perhaps break the stated level to trade toward the next major support at USD 94.

Overall, the cryptocurrency is in deep red and the recent events could further push prices lower in the near term.

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