The news and reaction is obvious. Yesterday, and all night the major trade signals have been to sell other than a couple of short reaction longs from bounces.
The Chinese government basically told the Chinese citizens to get the hell out of Bitcoin. But come on, no surprise here. Chinese people (those with money) work all week long on ways to get money out of China. So with the front door being closed by the chinese government, they will poke other holes in the Great Firewall of China (like they always do.) It's just a matter of time before underground cash businesses get set up to sell bitcoin, and numerous other mechanisms get set up. Rich people LOVE money mechanisms independent of banking. Bitcoin is the ultimate vehicle. So it's just a matter of time.
So what until then?
The big question is how much of the Chinese flush is over with, or is there more flushing. Once the flush is finished, Americans and EUROpe/South America can begin stepping up. The flood of buying this morning was when New York banking opened. So we'll know more after the Asia session and beginning of Euro banking.
I'll check back in later during the Asian trading session, and until then,
Stay Safe : )
cj
