Bitcoin tests bottom of rising channel after Chinese stock crash
Last Updated on 24 May 2026 by CryptoTips.eu
The largest digital currency briefly dipped below the support line of $76,000 this weekend and threatens to end the month of May on a negative note, which would negate a rebound following ‘crypto winter’.
Although we are still in the rising trend channel, Bitcoin needs to trade towards $80,000 again next week if we do not want to risk entering a new bear market.
There was no clear signal for Bitcoin’s decline, but it does follow the (small) stock market crash caused by some stocks in China on Thursday and Friday.
¥2,000,000,000,000 erased from Chinese stock market today.
— Ted (@TedPillows) May 21, 2026
It's happening. pic.twitter.com/FhUYQyVXwd
Alibaba
The news that shares of online brokers Futu Holdings and UP Fintech Holding plummeted on the Chinese stock exchange (after the Chinese government threatened to delist all unlicensed companies from their exchanges) caused a ripple effect in the US stock markets. Chinese stocks listed in the United States, including Alibaba, JD.com, and Tencent, all fell sharply on US exchanges.
Analysts believe this could be the start of a new trade war between China and the United States, but on the stock markets.
The negative news became noticeable on the crypto market on Saturday, where Bitcoin suddenly dropped below the support line of $76,000. Although the largest digital currency remains within the upward trend channel, we do need a return to $80,000 quickly to avoid getting bogged down in a new bear market.
The coming week, already the last week of May, will therefore be very interesting for Bitcoin.
