China just bit Bitcoin

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They way Bitcoin moved reminded me of a certain shiny medal’s movement a few years back. There was certainly an certain euphoric feeling created when Bitcoin’s value increased continuously for for about 5 months.

The last few movements just before 2016 ended is what I categorize as a Parabolic move. The first 2 days of 2017 saw the value of the cyber money increasing by 191 points. A windfall for many traders buying it. The 3rd day of trading saw the first big wave of selling sending prices crashing nearly 20%, and down more than $100 under $800 on comparable US markets Wednesday, after China’s central bank said it had launched “spot investigations” on bitcoin exchanges in Beijing and Shanghai in order to fend off market risks. The investigation of exchanges, including BTCC, Huobi and OKCoin, was to look into “possible market manipulation, money laundering, unauthorized financing and other issues”, according to the statements posted on the People’s Bank of China’s website. Most of the buying originates from China, this is because the digital currency remains one of the final, and most successful, means of bypassing capital controls in China. PBOC noticed it and any mandate that bitcoin no longer be a means to illegally transfer capital offshore, would see a risk of a dramatic and a sharp drop in its price. Now that an investigation is in place, the selling is in place. How low would Bitcoin go would see how long the investigation goes, what is unearthed and the final ruling.

For now watch out #WAWS support of 737.66 and 570.51 as possible support areas.