This makes the upcoming week a crucial one for bitcoin as the market would be looking out for any such announcement from China and if it turns out to be true, it could lead to another major round of selling in bitcoins. On the other hand, the market would also be looking for any such bad news from any other part of the world and watch out for how the situation develops. If the news about the exchange ban turns out to be false, then we could be in for a major bullish run in the bitcoin prices as the buyers return but any such short term moves will have to be carefully handled.

Price Regions To Note

From a technical standpoint, this could be viewed only as a correction so far as the bitcoin prices have managed to bounce off the strong support at the round figure of $4000 and this has happened twice. Both times, the bounce from the support has been strong which means that several buys and stops could be building up in this region every time there is a bounce and this would only make this support stronger.

If the prices do manage to break through the $4000 region, then the next target would be $3800 and then $3600 on the downside. If the news turns out to be false and we see a bullish leg in the prices, then the target would be $4600 and any progress beyond this region would be doubtful at this point of time when there is so much uncertainty around.

We believe that this is a sign of maturing of the market as more and more regulations begin to come in to ensure the correct flow of funds in this industry and once such drastic actions from the Chinese and other regulators have the desired effect, they would be stepping in to restart the whole market again in a regulated manner under their purview. This should help to keep the bitcoin prices buoyant in the medium and long term.

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