Bitcoin Price Analysis: BTC Losses Coincide with China’s New Policies

Dalmas Ngetich

1 year ago

2 mins read

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Bitcoin Price slow down after sinking 10 percent
China introduces new privacy quashing blockchain rules
Trading volumes steady but bearish

Even though today’s losses are low, there is hope for traders as long as Bitcoin prices are oscillating above $3,700. Drops below this minor support line could trigger sells towards $3,220 or lower in the next few days.

Bitcoin Price Analysis

At spot prices, Bitcoin is down 3.8 percent in the past 24 hours but stable in the last hour. The coin is flat and trading within a tight trade range contrary to yesterday’s rapidity.

From candlestick arrangement, we expect prices to cool down and even expand towards $4,000 before bears wash down gains in the direction of Jan 10 losses while reaffirming bear trend continuation as spelled by the price action of mid-November and early Dec 2018. Our short-term bullish trend is valid and until after there is a clean break and close below $3,700, there is hope for BTC long traders.

Fundamentals

Different governments have different views on cryptocurrencies. To meet popular demand, some are opening doors and even allowing exchanges to self-regulate. Countries like Japan are very open, embracing new technology while others are not interested in the application of blockchain to create competing, censor resistant currencies.

When everything is said and done, it’s all about control and China, as we know, is strict. Although we understand their companies are leaders in crypto, filling patents rivaling those from the US and Europe, the country is against the proliferation of Bitcoin and crypto. However, they see a future in the blockchain. That is why the Cyberspace Administration of China (CAC) is releasing a new document detailing new regulation that crypto and blockchain companies must adhere with.

Once it becomes law by Feb 19,2019, blockchain companies would divulge log user activities on request, allow authorities access to private data and even reveal groups or individuals behind secret or anonymous accounts. It bins all blockchain principles and is authoritarian even though it is for the good of national security.

Candlestick Arrangement

As aforementioned and from previous BTC/USD trade plans, the rejection of higher highs right off the 38.2 percent Fibonacci retracement level hints of underlying bear momentum. Since none of our conservative trade conditions came to pass and bulls didn’t close above $4,500, we recommend patience aware that liquidation below $3,700 or Dec 28 bulls and bull flag base could lead to further drops to $3,220. Uncertainty reigns and to avoid the claws of bears, we suggest liquidating BTC holdings for stable coins while stepping up if prices drop below $3,700.

Technical Indicators

Jan 10 declines were at the back of above average volumes—35k versus 18k right off the 38.2 percent Fibonacci retracement level. Reversal at this level was significant. Any confirming drops below $3,700–even with light volumes, could lead to further drawn down in sync with Dec 20 high volume bear bar—117k versus 37k.

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.