Will the Chinese Market Push Bitcoin's Price Up?
It has been roughly two weeks since the Chinese government made a U-turn on its policies regarding cryptocurrencies. They have removed cryptocurrency mining from the list of industries to be eliminated and are experimenting with a digital currency called the DCEP. In addition to that, Hong Kong have released cryptocurrency exchange laws, which echo American laws regarding cryptocurrencies.
It appears that even More positive news regarding Bitcoin & cryptocurrencies is coming from the Asian giant.
Xinhua Daily Introduces Bitcoin
Established in 1938, Xinhua Daily was the first newspaper introduced by the Communist Party of China. The paper primarily focuses on economic, social & political events in the province of Jiangsu and has an estimated circulation of 470,000.
The news source recently unveiled an introduction to Bitcoin in their finance section. In the article they claim that it is the first successful application of blockchain technology amongst other praise.
Seeing the current blockchain hype in China regarding blockchain & cryptocurrencies, other media sources in the country could follow.
Hypothetically as the world's second largest market, Chinese demand could inflate Bitcoin's price.
A Look at Bitcoin's Chart
It seems that Bitcoin has been faring well over the past month with relatively low volatility. Bitcoin is currently trading at $8,801, roughly $1000 lower than its monthly high, but higher than its rate of $8400 on October 11th.
A look at the weekly charts show a flattening MACD which could be a sign of an upcoming bullish movement. The CCI shows a possible upcoming recovery & the ADX & DI are in green showing a strong trend.
The RSI appears neutral & the and the trading volume needs to rise to confirm a bullish movement. All things considered this could be a good buying opportunity for traders.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado