It seems like the markets have finally moved passed China’s threatening announcements towards cryptocurrency. The bitcoin price has just broke the $4,000 mark, a big recovery from recent lows in the $3000s.
$5500 Ahead: Bitcoin Price Recovery Marks Turning Point in Technical Indicators
The bitcoin price recovered this morning after a brief decline, brought about by negative announcements from China regarding the future of ICOs and cryptocurrency in the country. At the onset of this dip, the bitcoin community worried it was a precursor to a much larger crash, speculating that further announcements from China would create even more panic in the markets.
But that doesn’t seem to be the case. At press time, the bitcoin price hovers at and above $4,000, going as high as $4,100 at 10 AM EST this morning.
Now beyond the $4,000 psychological barrier, analyst are looking at the future prospects of a bull rally.
Our own technical analyst here at Bitsonline said a break in the $4,000 barrier could trigger a technical movement that can send the bitcoin price as high as $5,500. From there, the stage will be set for a massive surge to $9,000 by the end of the year.
Chinese Turmoil Finally Over?
With Bitcoin recovering in a big way, does this mean the regulatory fears over China have faded? Maybe in the short-term, but there’s no way to know for sure how the Chinese government’s announcements will affect markets in the long-term.
With exchanges in the country suspending all activity, and rumors of more to follow, and could be possible that the biggest Bitcoin market in the world loses essentially all access to the digital currency. With that much of the asset’s demand gone, the price would crash severely. A worst-case scenario for sure, but certainly something to consider.
Additionally, with ICOs seemingly on the ropes in China, a large portion of interest in the general cryptocurrency ecosystem could fade away. That too could have harmful effects on the bitcoin price.
For now, though, we can all enjoy the recovery, and hope the ride upwards continues.
What do you think will happen to the bitcoin price? Share your thoughts in the comments below.
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