The last two daily trading sections have seen Bitcoin surge as high as $45,000 sparking hopes of a return to $50k. Market conditions also suggest that the king coin will continue the uptrend as the bulls were holding the coin at various supports and breaking resistance. Market directions changed in the last 12 hours as we saw the king coin slipped as low as the $40k region before hitting support.
The Fear and Greed index is currently displaying fear as its readings are currently at 33. No doubt, the price dip is caused by Fear, Uncertainty, and Doubt (FUD). What is the source of the current FUD rocking the market?
A Resurface Of Old News
News of the Chinese government, banning bitcoin is not a new event. China has stated its stand against the digital gold more than once and a little too often. Most of the time, the market react with FUD; causing the prices of various cryptos to retrace.
This time is no different as we see that bitcoin along with most cryptocurrencies suffered a price setback.
In the latest China ban on Bitcoin, ten agencies, including the central bank as well as banking, securities and foreign exchange regulators, vowed to work together to root out “illegal” cryptocurrency activity.
Although this is first time Beijing-based agencies have joined forces to ban all cryptocurrency-related activity, the news js no surprise as in 2013, China banned financial institutions and payment companies from providing services related to cryptocurrency transactions.
BTC has shown a lot of resilience at $40k as it has held on to this support after two attacks in the last seven days.
Bitcoin is trading above $42,000 as it is recovering from the previous correction it faced. We may see a return to $45,000 in the next 48 hours if current conditions remain the same.
