Bitcoin In-Demand, Chinese Traders Flow as Prices Steady above $5,000

Dalmas Ngetich

1 year ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin bulls in control, up 25 percent
Stable coins and OTCs allow Chinese participation

Chinese traders are back. Thanks to OTCs and stable coins, traders can by-pass trade restrictions but at a premium. Overly, their involvement hints of bulls. Because of clear breakouts, it is likely that Bitcoin (BTC) would surge to $6,000.

Bitcoin Price Analysis

Fundamentals

In China, engaging in cryptocurrency trading is illegal. However, citizens can be holders of the world’s most coveted digital asset. It is now emerging that despite the obstacles placed by the restrictive government, savvy Bitcoin enthusiasts can still invest and profit from the asset’s fluctuation.

To do so, CN Ledger, a Twitter user, says that most do buy stable coins as USDT and later convert them into Bitcoin and other cryptocurrencies via the OTC market. The demand for the stable coin force traders to buy BTC at a premium since OTCs avail USDT at 7 CNY against the normal 6.7 CNY against the USD.

1/ Chinese markets reveal strong buys. OTC (Over-The-Counter) trades, the almost only way to buy bitcoin with fiat in China, showing considerable $ premium (1 USDT = 7 CNY) over the official rate of 1 USD = 6.7 CNY. pic.twitter.com/bd0n0DGFVU

— cnLedger (@cnLedger) April 8, 2019

The blanket ban on cryptocurrency trading and investment in ICOs did cut out liquidity from tech-embracing Chinese audience attributed to the first pump that saw Bitcoin prices rally from cents to above $1.

Aside from their involvement, Chinese miners play a crucial role in securing the network. As such, the revelation that they are exposed mean the demand of Bitcoin is real. Because of this, prices will likely print higher in days ahead. After all, Paul Schmidt, a renowned technical analyst expects another wave of higher highs to thrust prices towards $10,000 or higher in coming weeks.

Candlestick Arrangement

All the same, while there is excitement that citizens from the second largest economy are investing in Bitcoin, it appears as if upside momentum is waning. At the time of press, Bitcoin (BTC) is up 25 percent from last week’s close but stable in the previous day.

After last week’s steady gains, bulls could slow down allowing for a natural correction back to $4,700—$5,000 zones. That pullback shall allow traders to ramp up, feeding the next wave of higher highs towards $6,000—our immediate resistance level.

After all, the trend is clear, and Bitcoin (BTC) is trending within a bullish breakout pattern after closing above the 5-month resistance trend line visible in the weekly chart.

Technical Indicator

Last week’s volumes were humongous—153k against 78k averages– and found our trade inclination. However, in the daily chart, volumes are thin and shrinking. But unless otherwise, prices drop with equally high transaction levels exceeding 54k of Apr 2, we shall maintain a bullish outlook with targets at $6,000.

Chart courtesy of Trading View

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.