Bitcoin Plunges Below $3500.00 as Regulators Prepare a Formal Ban on Domestic Bitcoin Exchanges!
The bitcoin-US dollar exchange (BTC/USD) rate fell to a fresh four-week low of $3,413 this morning following reports that Shanghai-based bitcoin exchange BTCC will shut down its domestic trading operations effective September 30.
As such, the announcement is the latest that supports the rumor regulators are preparing a formal ban on domestic bitcoin exchanges. Long liquidations in BTC markets have gathered pace amid fears that a confirmation from the People's Bank of China will follow over the next few days.
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According to data from CoinMarketCap, bitcoin's price has shed 11 percent over the last 24 hours. The drop seen today has taken the week-on-week losses to 24 percent. Month-on-month, the cryptocurrency is down 19 percent.
Though driven lower by the bearish news flow, the sell-off should not come as a surprise as price action analysis favors the downside toward $3,000.
Let's have a look at new developments on the technical charts that corroborate the bearish view presented 24 hours ago.
Daily chart
Weekly chart
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Bitcoin has already retracted close to 50 percent of the July–September rally. With the 1-hour and 4-hour RSI hovering in the oversold territory, the dips below the upward sloping 10-week SMA could be short lived.
A move higher to $3,750-3,800 cannot be ruled out before another round of sell-off unfolds.
In the long-term, BTC looks set to test $3,000 levels.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
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Interesting decline. Funny how the Chinese were and are the bulk of BTC purchases and this seems to be happening there? One has to wonder with all the talk of the Chinese setting up so many ways around using the dollar why they would try to ban or discourage the use of BTC? I think this lil' set back if it can be called that will only fuel the fire and make the price run in the future. I mean what a great buying opportunity right?
The Chinese and the Russians have recently launched the BRICS bank. They want to distance themselves from the petro dollar and base their currencies in hard gold backed currencies. Putin has often said that even though the ruble is weak against the dollar it is backed by the gold they have in their coffers. the Chinese have been shipping gold out of Africa and into China by the ton. the Indians recently paid millions of dollars worth of gold for oil from Iran. I think it''s not in the interest of BRICS or their plan to have competetion from another currency which they can not control.
Interesting point but it should be a free system not one anywhere where the gooberments of the world control them. We've had enough of that shit. I like tangible but not controllable. The CPU coins may have value out of belief but nothing else similar to paper but atleast they are free in their own right. I digress.
matdaniels , you nailed it bud I fully believe china is banning bit coin to protect their gold backed currency , what they should do is create a yuan backed crypto .