The Reason Why China Will Fail at Banning Bitcoin Again…
September 28, 2021Will Consumer Spending Justify Investors’ Expectations? Is There Really “Pent-Up” Demand?
September 28, 2021
Last week the cryptocurrency market started on a positive footing backed by positive news. For example, on September 23rd, Twitter announced it would integrate Bitcoin tips through the use of a Bitcoin address or Lightning Network-enabled wallet:Source: TwitterThe crypto community welcomed the news, claiming that Twitter will facilitate the mass adoption of cryptocurrency and Bitcoin will become the native currency of the internet:Source: TwitterAnother positive news was that just for the first month of accepting Bitcoin in El Salvador as legal tender, the adoption rate in the country reached 1.6 million citizens and surpassed the number of bank accounts:Source: TwitterHowever, in the second half of the week, the market sentiment changed. Reuters announced that China’s top regulators would ban crypto trading and mining:Source: TwitterChina’s news dragged down the price of Bitcoin from €38,500 to €34,500 just within a couple of hours because the FUD spread across the cryptocurrency space almost immediately.However, during the weekend, the market started to recover because the crypto community realized that the China FUD is not something new to the market:Source: TwitterHashcash inventor Adam Back even underlined that news such as ‘China bans Bitcoin’ is a clear buy signal:Source: TwitterAfter a quite volatile week, the Monday market starts with a solid intra-day price rebound. According to Coin360.com, one Bitcoin costs €37,319.08 (+5.18%), one Ethereum — €2,640.58 (+11.03%), one DOGE — €0.1703 (+5.93%), and one UNI — €20.79 (+37.28%):Source: Coin360.com (Daily crypto market performance)Now, let us analyze the price charts of the leading cryptocurrencies against the euro in the most noteworthy time frames.BTC/EURIn the weekly time frame (1W), BTC/EUR has formed two subsequent Bearish Engulfings:According to the Technical Analysis theory, a Bearish Engulfing is a trend reversal pattern that occurs at the end of some upward price moves. That is why the bulls should be very cautious…
