In my latest analysis, I said if we flipped and went below $7,300, Bitcoin would be technically bearish. But we never broke our bull trend from the bottom.
Is Bitcoin trapped in a bearish trend this week?
So I believe that Bitcoin is in a bullish trend on a macro level and had been bullish until it broke $7,300 with our beautiful $3,000 candle and pushed into the next stratosphere in a very short amount of time due to the China news.
I would say that we have had a corrective movement, and it’s complete. What’s next? I believe we’re about to reach up again and see what we’re seeing right now: a corrective movement probably to touch and tap the key around $8,500 to $8,600 on the weekly level.
And then we can see Bitcoin price grow again. I believe that we will come into the eights before we see $11,300, but that is my next target on a macro scale. Once we tap $8,500 to $8,800, we should see growth into the next step up for Bitcoin.
So, I think that we are not in a bearish trend.
That was the end of the correction at $7,300, which I was saying and calling for from the bottom to the top at the 0.618 retracement level.
Did the news from China affect the price of BTC?
Now, talking about the Chinese president’s announcement about the importance of stepping up research on the standardization of blockchain in the country. No-one’s ever had a big problem with blockchain in China.
They had supported the technology for quite some time. Now, because they support the technology of blockchain, that does not mean they support cryptocurrencies.
But what you do see is people around the world assuming that this will support cryptocurrencies and be beneficial. And we saw this massive pump that ended up resulting in the news.
So, is it a turning point in the government’s view on crypto? It’s not. They don’t care about crypto that much in China, the government wants to use their own cryptocurrency that is nationalized.
Yes, they use a nationalized completely centralized cryptocurrency. This means that if you have, let’s say, $100,000 to your name and you will leave it in the Chinese national currency, they will have a way to freeze your funds and literally lock you out of all the money that you have if they so choose.
This is not what Bitcoin is about. With Bitcoin, you own your private keys. So I think that many people in China that are intelligent will look at this and go, “Oh my God, they already have social credit. They already control so much of our lives. Now they can have the ability to control all of our money at some point.”
The only thing that will free these people is Bitcoin or other cryptocurrencies that are not on centralized ledgers. I’m using Bitcoin as an example here, because it’s the biggest.
Bitcoin cannot be compensated and it cannot be centralized. So yes, it’s impossible for authorities to stop people who use Bitcoin.
And this is why they don’t like Bitcoin and crypto – they can’t control it. This explains why Xi Jinping came out with that statement and said they would have their nationalized crypto currency ready by X date.
Now, endorsing blockchain technology is not endorsing crypto. And this is why we did not see a sustained pump into the crypto market. This is why we saw our $3,000 candle, and now we’ve had quite a few days of a slowdown.
If you talked to anyone in China, in Asia, they would also tell you that it didn’t seem realistic that it was China that was pumping the price.
But I really do believe that if you see what’s going on in Hong Kong and how many people have bought and increased the volume of Bitcoin to the point where it was in 2017’s hype cycle, you would predict a huge movement of the course in the 4th quarter of the year.