We’re near the end of the week with the price of Bitcoins drastically different since our last update two days ago, a change reportedly once again due to Chinese exchanges, who after talks with the People’s Bank of China pulled the hand brake on Bitcoin sales. While some correction was expected from the bearish wave that started forming on Wednesday, nobody really expected the price to take such a dive.
Just like it has been for the past month or so, the Bitcoin world is again buzzing with talks of China’s role in the survival of the cryptocurrency. But while prior market panics have taken massive cuts to the value of Bitcoins, it now appears that those hits are becoming slower and smaller, once again giving some credibility to predictions that Bitcoin is moving from weaker to stronger hands.
Bitcoin Market Overtaken by High Volume and Bears
Right around the time news started spreading about new restrictions from China’s side, the Bitcoin price took a steep plunge from $1,053.49 to $935.19 in the course of only two hours. Since then it has been struggling to regain ground and find support at the $960 mark, with little hopes of topping $1,000, for now.
The trading market is noting high interest, which is to be expected, with the current volume being $384,524,000. The market cap, on the other hand, has dropped significantly to $15.7 billion. Judging from the present winds and high volume, any major price upticks are unlikely, for the time being.
Our market analysis shows that sellers are holding a strong grip on the market, with all 12 moving averages and 7 out of 12 oscillators being in the sell zone. The SMA 100 is still safely above the SMA 200, hinting at an upward path, but the gap between the averages is narrowing, so don’t get your hopes up yet. However, short term analysis also shows a buyer pressure forming, with the RSI already hinting there is still some bullish pressure left.
Right now, the market is predominantly pro-sell, hinting at further tests for the price, while the buyer pressure might be enough to keep it within the $960-970 range. As always, keep a close eye on any changes, especially in times like this, because if bears keep hitting the market, we might see another break below.
PBOC Stops Withdrawals at China Bitcoin Exchanges
The three biggest China BTC exchanges by volume have taken measures to stop Bitcoin withdrawals as a result of pressure and discussions coming from the People’s Bank of china. OK coin, BTC China, and Huobi, all issued statements on Thursday, saying that the measures were introduced due to a request from the PBOC, and they will be dropped once updates to the exchanges’ compliance system kick in.
Out of the three exchanges, only BTC China still allows withdrawals, but only with a 72-hour review process, while OKCoin and Huobi have completely suspended them. However, according to official statements from the exchanges, conversions of BTC to Yuan and back were not affected, only the withdrawals, since the PBOC’s main focus, as has been reported, was to curb capital flight.
The reason for suspending their services, according to Bloomberg, was due to warnings from the PBOC that any Bitcoin exchanges who are found to violate the rules on managing foreign exchanges, payments, and money laundering, will be closed. Thus, the exchanges will be doing upgrades to their system, which are expected to last about a month for Huobi and OK Coin, while BTC hasn’t specified a time frame.