We can say, the Bitcoin market is experiencing tempestuous days at the last times. The price movements have become the unpredictable level with the beginning of new year, and millions of traders lost a serious amount of money on Bitcoin market. When we look at the Chinese market, Bitcoin investors has taken the shocking news in last weeks. After meeting between coin markets and People’s Bank of China, the withdrawal requests have stopped for a while. The official statement made after the meeting with BTCTrade, Yunbi and some other popular institutions. The bank warned them to take precautions about avoiding black economy on Bitcoin market which has increased in the last years. Also, the bank stated that if swap sites do not comply with the rules, there could be some ban and closing penalties.
In order for users to resume their depositing and withdrawing activities, companies are expected to comply with the legal standards of the Central Bank as soon as possible. As we know, the zero commission policy imposed by the Chinese stock exchanges has been removed as part of this regulation and commissioning from transactions has begun. When we look at the first affects on Bitcoin companies, they have announced that they will stop their activities for a month. During this time, the companies and stock exchanges will make regulations on legal obligations.
On the other hand, after hearing this kind of precautions and warnings on the Bitcoin market, we could observe a strong decline in prices of Bitcoin. The price level decreased under the 920 USD level with the latest developments in the last days of January. On the other hand, after Chinese commodity exchanges began to receive commissions in transactions, there was a 90% decrease in trading volume in China. With the starting of February, we could observe some recovery signals in Bitcoin market. The general expectation is pricing the positive atmosphere in the market and the traders are waiting for solving this problem in the Chinese market. But, we may experience a lot of problems during this process, and many traders started to avoid Bitcoin trading after this kind of developments. This table is already enough to make the thought that China will not be leading the global Bitcoin trade any more. Nowadays, the price level is standing over the 1000 USD level.
As a technical approach, in the past week, 1000 USD level was broken and the price was up to 1050 USD. However, in the second test, the price did not rise too much, and again it decreased under the 1000 USD level in Bitcoin market. It can be said that Chinese stock exchanges have a big influence of stopping BTC attraction. This may be due to the fact that Chinese investors are returning to Yuan trading instead of Bitcoin, and so they are out of stock.
In a scenario, if the Bitcoin price cannot hold over the 1000 USD level, we can see a movement towards around 900 USD. In such an action, 20 and 50-day moving averages will work as support levels. If you want to make buying and selling transactions on Bitcoin market, you should consider a lot of factors. In such a movement, panic sales can be observed to very fast retreats to the 850 USD level.
In another scenario, if the price remains above 1,000 USD level, we may still be thinking of upward movements. In such a case the last resistance points will be monitored as 1,175 and 1,220 USD level for the Bitcoin market.
Finally, we can observe a lot of different scenarios on the Bitcoin market, because the dependency of this market is so high with legal conditions. Especially we think, China is the biggest market of Bitcoin market, but these conditions will be changed in this year, many other countries may play an important role in attracting investors. As you see, if the price level stays over the 1000 USD level for a while, the new test level will be over the 1050 USD for the Bitcoin market.
- Date: 15 February 2017 Wed 20:37
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