Following the People’s Bank of China’s recent warning to domestic bitcoin exchanges, OKCoin and Huobi have announced that they will suspend withdrawals of bitcoin and litecoin for a month, effective immediately, CoinDesk reported.

The exchanges clarified that yuan recharge, withdrawals and other services will not be affected. They explained that the decision was taken in order to boost their anti-money laundering (AML) capabilities and prevent illegal transactions.

In addition, OKCoin and Huobi said that they will upgrade their platform to “prevent and combat the use of bitcoin for money laundering, exchange, pyramid schemes and other illegal activities”.

Another leading Chinese bitcoin exchange BTCC also echoed similar announcement. The exchange said that it would also upgrade its internal systems, adding that bitcoin and litecoin withdrawals will take 72 hours to process, as reported by CoinDesk.

Bitcoin price reacted sharply to the news as it dropped from 1067 levels to 913 levels (Bitstamp). The pair has taken support near Cloud bottom and currently trading at 985 levels at the time of writing.

Momentum studies have turned bearish for the pair as RSI(14) is at 54, bias lower; and Stochs have rolled over from overbought zone.

In the daily chart, the pair has moved back above 21-DMA and holding around 985. Further bearishness could be confirmed if the pair closes below 955 (21-DMA).

The pair is facing resistance at 1000 levels (trend line joining 751.34 and 910) and a break above would target 1028 (7-DMA)/1044 (February 04 high).