Bitcoin has roundtripped $1200 from record highs near $7600, down to $6900, and back up to $7500 this morning on the heels of renewed interest in China crypto trading and a technical report from Goldman suggesting $7941 as a short-term target.
Quite a move but back to highs...
Two months ago, when Chinese regulator issued the “Seven Regulatory Bodies” Announcement and shut down the Bitcoin trading, the whole world thought that China Bitcoin gates were closing.
As CoinTelegraph notes though optimists were claiming that Chinese government might free Bitcoin trading under certain circumstances in the future, nobody anticipated that the day is coming this soon.
On Nov. 1, ZB.com, a new cryptocurrency trading platform, began to serve sellers and buyers all over the world, including those in mainland China. ZB.com has become a major trading platform which provides trades of BTC, LTC, ETH, ETC and another major type of cryptocurrencies within a few days.
What’s more, on Nov. 8, it started to accept CNY as a deposit. In other words, the CNY trading market which was closed by the regulators is activated now. The platform only accepts credit cards and debit cards for CNY deposit. WeChat Pay and Alipay are not accepted yet.
Though it’s still too soon to state that Bitcoin trading is freed by the Chinese government, it's highly likely that the government, instead of banning Bitcoin and cryptocurrencies is more interested in regulating the market and supervising the trading. Like it or not, a new era of Bitcoin in China is coming, and law and order might play a more significant role now.
Additionally Goldman Sachs technical analysis team signals Bitcoin's next leg is higher to $7941...
It exceeded an equality target from the July low at 6,044. This break indicated potential for an impulsive advance, one that could reach at least 7,941. This is the minimum target for a 3rd of 5-waves up and should therefore be a level from which to watch for signs of a consolidation.
It’s important to emphasize that a stall near 7,941 should be viewed as corrective/counter-trend. A typical 4th wave will often hold ~23.6% of the length of wave 3; which from 7,941 measures out to ~6,767. Given that this is just a 3rd of 5-waves up, the implications are that Bitcoin has potential to run further over time (wave 5 of 5).
View: Next in focus 7,941. Might consolidate there before continuing higher. Consider the pullback corrective against 6,767. Re-assess below 6,042 (38.2%).