I do altcoins this weekend, but this time I’ll make an exception and focus briefly on Bitcoin (BTC). At last analysis at best, the market seemed to have a good chance of one wave of growth. But that has changed considerably now that the “crypto ban” has come from the People’s Bank of China. Its a big problem? Does it wave significantly to the market?
Bitcoin and China
In the past, more of those “bananas” came from China. But it was always so vague, and the Chinese didn’t seem to be serious about the crypto. But that changed on Friday, as the People’s Bank of China made it clear that cryptocurrencies were simply not the currency. As a result, they are not to circulate in the local system at all.
It follows that they certainly decided to completely displace the crypto from China. Initially, I thought the report only covered tokens linked to real currencies like the USDT. In the end, it turned out that he meant everything. But it is true that the case may still have a dynamic development and may significantly supplement its radical statements, which will completely change the message of the original proclamation.
In any case, it’s a big problem – a lot of people take it extremely lightly, but it’s really a religious approach. We may not be interested in China, but their central bank has created it precedent. If they did, why couldn’t the SEC and the European Central Bank? All the big central banks are planning their digital currencies, why should they circulate competition that they can’t control?
Current situation at 1D BTC / USD
Bitcoin spilled more at one point yesterday, but it wasn’t serious in the whole day. The exchange rate stopped at the S / R level of 42,000 USD and the selling pressure stopped quite quickly. Personally, I was a little surprised that the market reaction is so mild. But then I realized that there have been so many similar reports from China in the last three years or so that market participants are pretty shabby.
So the market reacted decently at the said level, as I said, there is support confluencethat should last something. However, the volumes were again more powerful, which is not a good signal. I take the very form of a candle neutrally.
In the short term, therefore, I think that the situation on the BTC market will not change in any way. More precisely, yesterday’s slump was all we can get out of it now. If the price goes down, it will certainly not be due to China’s decision. But in the long run, my previous words apply. Indeed, this can be a big problem in the long run.
In conclusion
At the moment, I’m holding on to the fact that the course must soon break through, or continue within the drawn descending wedge. Therefore, the probability of a further decline in price ranges around USD 37,000 is considerable. If we go down, yesterday’s event didn’t have much of an effect on that.
ATTENTION: No data in the article is an investment board. The analysis does not try to predict future price developments. It serves exclusively as an educational text on how to approach the market mentally. Before you invest, do your own research and analysis, you always trade only at your own risk. The kryptomagazin.cz team strongly recommends individual risk considerations!
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