After falling below the $3000 threshold for the first time since early August on Friday, bitcoin was able to stage a rally before the end of the week, adding more than 10% against the greenback. As of writing, the BTC/USD was trading at $3650, up 12.7% on the day.
Earlier in the day, Yicai Global, a Chinese media outlet, in a report wrote, "Chinese authorities have decided that the trading activities of all cryptocurrency trading platforms shall be suspended soon and closed thereafter, a source exclusively told Yicai Global today." Forcing the digital currencies stretch their fall, which started last week on the news of China deciding to ban ICO's.
Despite today's recovery, however, the BTC/USD pair is still losing around $700 on a weekly basis while dropping nearly $1000 since the start of September. Chrisjan Pauw, an author at cointelegraph.com said, "rather than banning ICOs outright like in China, these countries’ (Japan, Singapore, and the U.S.) monetary authorities and regulators are looking to how to control, but not completely stifle, the growth in digital currencies," suggesting that bitcoin could continue to suffer from legal authorities' decision in the weeks to come.
Today's rebound seems to be a product of bargain-shopping as it wasn't backed by any fresh developments that could help eliminate the uncertainty surrounding the digital currencies' future.
Technical levels to consider:
The pair faces the first support at $3270 (100-DMA) ahead of $3000/$2980 (psychological level/daily low) and $2850 (July former resistance area). On the upside, resistances could be seen at $3900 (50-DMA), $4000 (psychological level) and $4160 (Sep. 13 high).
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