If we look at the we can see that Bitcoin is about to dip into the oversold range which has previous indicated that the correction may have run its course. And now that all the China news has seemed to have resolved itself and we now know China's plans regarding the regulation of ICOs and Exchanges, I think this could be the end of the correction. BUT beware, if your an active trader and Bitcoin breaks major support at around $3,000 we could see another leg down to $2,600.
Interesting note: After the last major correction like this the crypto market went on to almost triple in market cap from $65B to $180B. If we continue to grow at a similar pace we could easily hit $250-300 Billion in Market Cap before the next major correction.
There's a lot of sales going on right now so happy investing!
First, China said we are halting ICOs and all recent ICO's had to refund Chinese citizens money... the news reported or insinuated that they were permanently banning ICOs. Soon after, China clarified their statement to say they were temporarily banning ICOs until regulations have been put in place because there have been too many scams going on...
Once that began to die down rumours came out that China were permanently banning exchanges... and again news reported that China was against Bitcoin and has permanently closed down exchanges. China has stated that the current exchanges which trade fiat for crypto are illegal and must shut down until regulations have been put in place. They also state “The domestic exchange between all the virtual currency and the renminbi, represented by Bitcoin, and Ethereum, will be closed in full; however, the regulation is not against the virtual currency itself, nor does it prohibit the one-on-one OTC transaction of the virtual currency.” So they have no beef with crypto to crypto trading.
So basically all this FUD was over China saying we're stoping all transactions from fiat to crypto until proper regulations have been put in place.
- Misinformed news about the situation creating FUD globally for emotional newbies/weak hands
- Big gainers/newbies/weak hands in China are taking profits and panic selling to get out the market before China clamps down on fiat-to-crypto or exchanges potentially freeze accounts.
- Liquidation of crypto from refunds by ICOs
- I think whales are also taking profits and exacerbating the situation
- Jamie F'in Diamond talking garbage about bitcoin to scare the general population away from crypto.
The only thing I expect moving forward is a bunch of Chinese exchanges to announce temporary closures or the exclusion of Chinese customers in the exchanges until regulations have been put in place. All of which should not be surprise news.