[2019-10-26] Forget China—Is This The Real Reason Bitcoin Bounced?

[CryptoBry]

The bitcoin price is now at over $9,000 per bitcoin after dropping to lows of almost $7,000 on Thursday–and heading fast towards the psychological $10,000 mark, according to the latest prices from Luxembourg-based exchange Bitstamp.

Many bitcoin and cryptocurrency market analysts pointed to comments made by China's president President Xi Jinping that the country should "seize the opportunity" of bitcoin's blockchain technology as the reason behind bitcoin's rally.

Xi's comments, which referred only to blockchain technology and not to bitcoin and cryptocurrencies, might not have been the driver behind bitcoin's recovery. When the bitcoin price recovered a couple of hundred dollars per bitcoin in just a few minutes, some $150 million worth of short positions on the Seychelles-based BitMEX crypto exchange were liquidated.

This triggered what's known as a "short squeeze," where an asset rapidly increases in value due to short sellers trying to cover their positions, resulting in buying volume that drives the price up.

More of this news here...



While maybe the comment by the supreme leader of China did contribute something to the increased demand of Bitcoin, attributing this flash rise to him can make Bitcoin really in a weak position because we know that they guy was not talking about Bitcoin but the blockchain technology which has long been adopted, modified and exploited by China for years. In fact, soon China can be the blockchain capital of the world but still not a chance that Bitcoin can recognized and be openly traded in that big country and market.

Something else must be trigger and now we know how it came about. Are you in agreement with the article above or maybe you have your own and contrary idea and opinion?

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[Lucius]

You've been posting these stupid questions for days, did you finally come up with any meaningful answer which explains why the price has drop or gone up?

It is not because of Libra, quantum computers, drop in network velocity, Xi Jinping mentioning of blockchain or because crypto fairies played on Bitstamp or Bitmex, but as stated in this article it is about "short positions liquidated" or "short squeeze".

A good explanation for why the price dropped sharply is also posted in one of your threads, but other than opening new ones like this, you do not participate in the discussion.

The cryptocurrency was largely trapped in a trading range of $8,500 to $7,850 since the end of September. The consolidation was expected to end with a bullish breakout as technical charts were reporting signs of seller exhaustion near $7,850 – a key Fibonacci retracement level.

The range, however, has ended with a violent move to the downside, possibly due to massive long squeeze reported by @WhaleCalls. A long squeeze occurs when a drop in prices forces long holders to unwind their positions. That adds to the downward pressure, leading to a deeper price slide.

The range breakdown has exposed support at $7,430 (multiple daily lows in June). As of writing, BTC is changing hands at $7,600, representing a 7 percent drop on a 24-hour basis.

Can you finally understand some things and spared us stupid news?

[Saint-loup]

I disagree with your article from forbes, there are short squeezes and long squeezes almost every week but we've never seen such a pump before. +40% while we were in a bear market can't be explained by only TA and manipulations from whales. BTC price was just undervaluated and people got FOMO.

[Getmon]

Many are becoming detectives, investigators, and analysts when there is a sudden pump or dump that happens to Bitcoin's price. And they give conclusions as if the price of Bitcoin is only under the influence of a single factor. So what if the president of China is supporting blockchain? So what if there are people FOMOed into buying Bitcoin? So what if halving is near? Not any of these factors alone is causing the pump or dump. Bitcoin is a multi-billion market that is also affected by diverse factors.

[magneto]

It's probably a combination of both.

Xi's comments were the sparks, and a short squeeze was definitely imminent after such bullish rallies after that. Because of the sheer amount of shorts that people were taking out due to prices falling under $7.5k, that squeeze was extremely sizable.

This is why I think that prices may just regress again back to $8-9k before climbing back up in anticipation for halving next year.

[rodel caling]

Something else must be trigger and now we know how it came about. Are you in agreement with the article above or maybe you have your own and contrary idea and opinion?
[/qoute]


Bitcoin is not depending on china, bitcoin in my own views have an own capability as new currency even if without support the china government people knows bitcoin future.
Blockchain is part of the system technology so need to worry if china didnt want bitcoin to recognize combining bitcoin and blockchain.

[Slow death]

Bitcoin is not depending on china...

imagine the following:

if the president of china said: "from today bitcoin will be legal in china, all people in china can buy and sell bitcoin without problems, all exchanges can go back to china ..."

what do you think would happen? the price of bitcoin would go up a lot and the price of many altcoins like Neo would go up a lot, this news from the president of china about the blockchain was the catalyst for the big sudden price increase ... it was no coincidence, just think: from january until now, how many big price increases we seen? Some people still tend not to accept that this is a market heavily influenced by news from the US (US Senate and President Trump) and news from the President of China about bitcoin affect the price positively or negatively.

A big investor wants security, he will always worry about government decisions before investing a lot of money, so it is normal for price to be affected by what the presidents of major countries say.

[error08]

Bitcoin is not depending on china...

imagine the following:

if the president of china said: "from today bitcoin will be legal in china, all people in china can buy and sell bitcoin without problems, all exchanges can go back to china ..."

what do you think would happen? the price of bitcoin would go up ~

So, let's wait until the government said so, which I doubt they will be.
China tends to move differently from other countries, they create everything or trying to copy anything, create counterfeit goods.
It is more likely for them to create their own crypto rather than legalize bitcoin, adopt blockchain technology doesn't mean they will allow bitcoin trading.

[figmentofmyass]

Bitcoin is not depending on china...

imagine the following:

if the president of china said: "from today bitcoin will be legal in china, all people in china can buy and sell bitcoin without problems, all exchanges can go back to china ..."

what do you think would happen? the price of bitcoin would go up a lot and the price of many altcoins like Neo would go up a lot, this news from the president of china about the blockchain was the catalyst for the big sudden price increase ...

bummer if true, because president xi's comments have nothing to do with bitcoin IMO.

xi is undoing much of china's pro-market reforms from the 70s and 80s. he's also creating a cult of personality. all signs point away from free markets and free movement of capital and towards a return to communism.

given this, i think people are reading way too much into his comments. the central bank is launching a centralized digital currency so they can control and surveil the finances of chinese citizens much more easily. that's all.

[1Referee]

Bitcoin is not depending on china, bitcoin in my own views have an own capability as new currency even if without support the china government people knows bitcoin future.
Blockchain is part of the system technology so need to worry if china didnt want bitcoin to recognize combining bitcoin and blockchain.

Bitcoin isn't depending on China, but people in China are depending on Bitcoin to escape from the capital controls and whatnot.

If we look at Tether's Alexa traffic page, a new name has entered in the top visiting countries, which is HongKong, accounting for 11.5% of Tether's traffic. That's an indication of increased demand from that region and also explains why so little USDT is taken out of circulation. Tether might be total pile of shite, but it's helping a lot of people to circumvent the controls put in place by their own country, which is amazing.

China's latest support for blockchain might not be related to Bitcoin directly, but it helps expanding Bitcoin's longer term userbase as in this space people one way or another always find their way to Bitcoin.

[Kakmakr]

People are always looking for reasons for the Bitcoin price going up or down, but in many instances, no clear indication is given or received for this price movement. People can speculate as much as they want, but it is difficult to tie a specific event to a specific price movement in the market.

A lot of the reasons only become evident after a few weeks, when the actual event takes place. A lot of people have insider knowledge about a future event and then they start buying or selling prior to the actual event taking place.

We should rather focus on the price movement and not what is influencing it, because not all of us have access to the insider information, but we can see what the end result is, before it happens.  

[mohdk52]

China can still do a lot to promote cryptocurrencies and bitcoin in particular.

[BitHodler]

A lot of the reasons only become evident after a few weeks, when the actual event takes place. A lot of people have insider knowledge about a future event and then they start buying or selling prior to the actual event taking place.

I don't think it's that evident. In crypto there is always some event playing out that you can point at as reason for the price to have gone up or dow.... people are easily convinced that it's insider trading but I highly doubt that.

Most of these large movements are initiated by market movers knowing how to trigger short and long squeezes.... back when leveraged trading was less of a thing there were less of these spontaneous extreme mocements.

[bittraffic]

Nothing else could be the reason, most of the Chinese probably had bought all those who short at prices from $7500 to $9500 resulting the price to go up 40%. When some people sees the price pumps so much they ride along the pump but end up buying at the ATH which is the 9500.  I wold have done it too if I were from China, its almost a confirmation that XI is open to blockchain products like the cryptocurrencies.