Good post with original view on it. I just upvoted it.

I think there's definitely fear in the community, but many are denying it to handle that fear.

Luckily China is not the big trading hub in Bitcoin as it once was with Mt. Gox. There are now many alternatives. Chinese Bitcoin users can take their bitcoin to Localbitcoins, Korean and Hong Kong exchanges and any other exchange.

The major downside is that no new fresh Bitcoin buying will come online from CNY. That market will have to build up again.

The chinese exchanges might also have to liquidate their bitcoin holdings, giving a continuous downward pressure on the price.