Bitcoin has broken below $4000 USD following a sudden 12% sell-off. The dump occurred following the establishment of a third point of contact on a descending trendline from the all-time high of approximately $5000 USD, amidst speculation that China’s government may move to suspend the operation of some Chinese bitcoin exchanges.
The bitcoin markets are again testing the $4000 USD support area following a 12% drop, with prices currently hovering between approximately $3900 and $4000. The dip appears to have been triggered by rumors that China’s government will temporarily suspend the operations of all Chinese cryptocurrency exchanges coupled with the establishment of a third point of contact on a descending trendline from the recent all-time high of approximately $5000 USD.
Read more of this news here. For many weeks now, the market's overall mood is under the influence of the China Effect...whatever China said and may plan to do have the power to tear the price of Bitcoin. This recent sell-off is triggered by that lingering fear that soon China will ban the operation of Bitcoin exchanges and the unfounded speculation that it will also be banning the whole of Bitcoin (which is impossible, of course).
This time it is getting to be a little bit of a massacre and we are hoping that I am correct in saying that Bitcoin is a very resilient investment vehicle. According to its history, the King of all Cryptos have been through many ups and downs but it is always able to rise back like a phoenix rising from the ashes.
How strong are you in your vote of faith and confidence with Bitcoin?