Crypto Market Crumbles…What’s Next? | What the Blxck?!
What is the story being told by the technical analyses?
Topic at a Glance…
· The price of $BTC Bitcoin, and the crypto market at large, tanked and rebounded about 25% over an 8-hour period on Wednesday.
· With many new participants in the marketplace, it’s a bitter pill to swallow; for the veterans, this could signal new all-time highs in the near future.
A movement that prompted a top-trending topic on Twitter, the cryptocurrency marketplace took a sharp and sudden nose-dive on Wednesday, throwing ice-cold water onto the red-hot markets. As with any market down-turn, it’s important to find the answers to two questions: what happened, and what happens next?
China Announces New Crypto Services Ban
Citing the volatility of virtual currencies, the China Internet Finance Association, China Banking Association, and China Payment and Clearing Association announced revived guidelines for crypto services, including that “relevant institutions shall not conduct business related to virtual currency.” They also go on to point out that businesses should familiarize themselves with the properties of these currencies, and that potential participants should become more informed about the marketplace.
This type of move is not uncommon for the crypto-giant. They’ve pulled similar moves in each year from 2013 thru 2017, typically targeting either Bitcoin or Ethereum. Colloquial understanding of these moves is that this is a market manipulation, playing on the fears of people that don’t entirely understand the price-works. Announce the ban on services, price collapses, large players scoop up crypto at a premium, price normalizes.
Are We Primed for a Breakout Super Cycle?
In an attempt to soothe the sores of those that are new to the cryptocurrency exchange, the official Bitcoin account posits that this type of down-turn is perfectly normal for the marketplace, citing a logarithmic Bitcoin price scale.
With the Trading View technical analyses showing a variety of Buy, Neutral, and Sell signals, depending on which cryptocurrency you’re viewing, a turn to the price-call experts seems in order.
We’ll see where we go from here, but based upon the sentiment of the Twitter Bitcoin community, and the vibrancy of the institutional investor activity, the signal seems higher.
As always, What the Blxck?! editorials should not be considered or construed as financial advice.