Bitcoin Price Analysis: BTC/USD Technically Bearish and Yes, You Can’t Settle using Bitcoin in China
Latest Bitcoin News
$250K a Possibility
Tim Draper is known for making outrageous comments. But he is adamant that BTC will someday hit $250,000. With less than two months to go, it will be a fairly tale end year if prices surge to half that valuation. Needless to say, it is possible—remember, for Bitcoin to test those levels then digital assets must command less than 10 percent of the world financial markets, it will take years before BTC is widely used to make micro-payments as paying for coffee.
while ideal, there are many impediment as low throughput and others. It is simply not a priority considering everything that is happening. However, there are frameworks and step by step guidance that could spur adoption. First, many reckon, Bitcoin enthusiast should drive towards mass education. The second phase will be about building robust infrastructure while enhancing the network allowing for fluidity as well as better user experience. All these will lay down the building blocks of BTC use as a medium of exchange.
Making crypto Payment illegal in China
China is cracking down on cryptocurrencies including BTC binning previous ruling by the Shenzhen International Court of Arbitration. The latter said Bitcoin and similar cryptocurrencies are under the protection of the law. Unfortunately, arbitrators do not make laws. That’s the work of legislators. While making the ruling, the arbitrators relied on existing contract law and general provisions of the civil law to determine the contract that is at dispute.
1/ The official account of the Shenzhen International Court of Arbitration released an explanation on a recent share transfer dispute that involved bitcoin, bitcoin cash, and bitcoin diamond & determined that crypto is protected under China’s current property & contract law.
Aside from the existing laws, the arbitrator also relied on the “spirit of the original agreement” as well as the “original intent” of the parties determining that Bitcoin has property rights concluding that digital assets are under the protection of the law. Regardless, Bitcoin and cryptocurrency trading or payments is STILL illegal in the country.
BTC/USD Price Analysis
News from China were a bummer, popping expectations and what we now have is another ranging market. On a weekly basis, BTC/USD is up one percent and stable in the last day. Everything else constant, we need to see strong moves above $6,800-$7,200 resistance zone if bulls are indeed under control.
From previous BTC/USD trade plan, we were expectant of higher highs but the failure of bulls to find momentum should be a cause of concern for bulls. Of course, from a top down approach, buyers would be in charge if we see strong confirmation of Oct 15 breakout off the final section of the descending wedge. But, the failure of higher highs and the relative proximity of prices to the $5,800–$6,000 support printing within a bear break out pattern further affirm losses of Oct 11, 29 and Sep 5.
Volumes: Decreasing but Bullish
Anchoring our analysis is Oct 15. First, it is a breakout bar but of importance is the volume behind it. While BTC/USD is trading within a bear break out pattern following Oct 29 declines below the three-month support trend line, volumes are thin. First, Oct 15 volumes—at 85k are high as consequent bars average 10k or around there. Now for these bears to be confirmed BTC/USD should dip below $6,300 or Oct lows. Before then, we shall maintain a neutral outlook.
Candlestick Formation: Bearish Breakout Pattern
This is all due to price declines of Oct 29. Confirming this pattern is the failure of Nov 7 bulls to close above the former support now resistance trend line completing a retest pattern ushering in bear trend resumption albeit tight volumes. Like before, there would be complete reversal of Oct 15 gains once there are dips below $6,300.
Aside from Bitcoin ETF hype, the market is flat and trading within tight ranges. The trend is bearish, volumes low and worse, BTC/USD is trending within a bear breakout pattern. Unless there is a favorable announcement from the SEC, sellers seem to be in control and BTC/USD could dip below $6,000.
All Charts Courtesy of Trading View
This is not Investment Advice. Do your own Research