Bitcoin is back on the bull run and this time there is no looking back. Last week Bitcoin price fell below $3000 for the first time in months after news from China triggered panic selling. Few days later, price recovered sharply back to $4000 level – having gained 33% in three days.
This is the sign of investors getting over the initial shock and realizing China no longer dominates the market. The market has realized that exchanges based in China no longer dominate trading activity.
It is safe to say, Jamie Dimon calling Bitcoin a ‘fraud’ and China shutting down exchanges, has already been price in by the market. We have seen this in the past as well — the more institutions and governments try to suppress Bitcoin, the stronger it comes out.
Lower levels from $2900 – $3400 gave an opportunity to the eager bulls to make an entry. After breaking resistance levels of $3500 and $3900 within two days – unless some drastic news comes from China – Bitcoin could be up for a solid rally to hit record highs once again.
Although the ride will take some time. Bitcoin is likely to face resistance between the $3955 and $4100 levels, from both the moving averages and the downtrend line. At the time of writing Bitcoin is trading $3950 with a market cap of $65 billion.
It is important to understand that China isn’t at “war” with crypto. They’re trying to make it work for them instead. This reddit thread breaks it down situation very well.
Top Stories from the Crypto World
1. JPMorgan bought Bitcoins after spreading FUD
Let’s recap, shall we?
“It’s a fraud. It’s making stupid people, such as my daughter, feel like they’re geniuses. It’s going to get somebody killed. I’ll fire anyone who touches it.”
These were the words of Jamie Dimon, CEO of JPMorgan, when asked what he thinks of Bitcoin in an interview last week. This lead Bitcoin price to decline short term.
The timing of the interview couldn’t be more perfect for JPMorgan. It collided with China asking exchanges to shut down. As a result, prices kept falling and what did JPMorgan do?
Buy the dip.
According to ‘Bitcoin Tracker One – SEK’, an open-end Exchange Traded Note, JPMorgan Securities was the 4th biggest buyer during the dip two days ago:
2. Japan becomes largest Bitcoin market as traders leave China
Following the crackdown of Chinese government on country’s largest Bitcoin exchanges have left the traders furious. As a result, Japan has once again become the largest Bitcoin exchange market with 50.75 percent market share of the global Bitcoin exchange market.
It seems that Chinese traders are not willing to take any chances with their government and their unpredictable nature. China’s daily volumes have been halved within a period of three days, from 15 percent to less than seven percent.
A good thing to know: The US market was the largest Bitcoin market in the world prior to the nationwide Bitcoin exchange ban by China.
3. South Africa Pick n Pay to accept Bitcoin
The Pick n Pay in Cape Town will accept Bitcoin for payments starting today. It is being considered as one of the largest wins for Bitcoin in the country. The payment system is being powered by Electrum, a software platform created to process payments in different currencies.
Here is the video of a Pick n Pay executive buying dried fruit using Bitcoin.
Why it matters: South Africa is going through a crypto revolution so to speak. With the weakening Rand, South Africans are seeing Bitcoin as a great investment option – giving returns of between 6-15% per month. Stores like Pick n Pay accepting Bitcoin just goes to show the demand of the cryptocurrency among the locals.