What doesn't kill you makes you stronger! Current MC: $145.36B (-$0.24B in two days) Bitcoin Dominance 47.3%
This month is proving to be quite a dramatic one for Bitcoin yet again. We started the month out strong, hitting all-time records of $5K on some exchanges. There was a slight sell off once we hit that milestone and then a couple of days later the rumors of an ICO crackdown start circulating the web. On the 4th the market took a hit after the Chinese bank officially announced that it would in fact ban ICOs for the time being.
As if that wasn't enough they threw a one-two punch combo when Chinese news sources began another rumor about possible closures of Bitcoin exchanges in China. Naturally since they made this announcement at the start of the weekend we have had a few days to sleep on it. Coincidentally China just lifted two major financial restrictions on their Chinese Yuan (CNY) as their currency has begun to appreciate faster than expected (read here: http://www.businessinsider.com/china-removes-restrictions-after-yuan-appreciation-2017-9). This could be good news for crypto markets since it signals less public fear in capital flight from their country and a strengthening Chinese economy overall.
Bitcoin's demand seems to be holding strong in the face of these restrictions and has found a nice support base in the low $4,000's. The old support zones of $4150-4250 have been holding fairly steady over the past day as we await any developments. The uncertainty in the markets have sent some investors running with their tails between their legs. I'm patiently waiting for the next wave of money to flow in :) There is NO stopping Bitcoin- always remember that.
In today's chart I pointed out the two massive sell-offs that happened this week as a result of the recent drama. There seems to be some serious market manipulation at play here. It would not be hard at all to bribe some officials or news outlets in China to make such announcements and start rumors. Any time there is money to be made corruption will arise!
We are starting to form a wedge pattern and the only way to go is up from here! The investors are patiently waiting to jump back in the mix and it's almost like a game of dare.
Likely Scenarios:
- BTC holds above $4150 today
- BTC pops back up to $4350 before settling around $4250
- We hold around $4200 before volumes pick up and we jump back to the $4400 range by tomorrow
TLDR Version:
China is taking advantage of its psychological power over the Bitcoin markets. BTC has been depressed all week and is just waiting to go higher. Expect prices to hover around $4150-4250 until we can break out of the resistance around $4380.
Price Target:
$4430
Alt-coins To Watch:
- BCH
- IOTA
- NEO
- EOS
- FUN
- SC
- BTS
*Never invest more than you are willing to lose and always do your own research before making any investment decisions.
