Sound acquainted? September 2017 China Bitcoin ‘ban’ sparked $20K all-time excessive in 3 months
Bitcoin (BTC) dipped deeper to problem $40,000 help throughout Sept. 24 because the mud settled on what analysts confused was a false alarm from China.
A basic bull run method?
Data from Cointelegraph Markets Pro and TradingView confirmed new multi-day lows of $40,690 for BTC/USD on Bitstamp, down 8% on the day.
Hodlers had been annoyed however remained unfazed by the information that China had allegedly upped its cryptocurrency “ban,” this the truth is merely being a reiteration of the People’s Bank of China’s present restrictions in place for 4 years.
The occasions have a hoop to them — in September 2017, the unique “ban” announcement despatched Bitcoin tumbling, solely to recuperate to its authentic ranges inside weeks and set a brand new all-time excessive of $20,000 lower than three months later.
The reality was not misplaced on long-time market contributors, together with these on social media, the place the China information had initially resurfaced and sparked panic.
The identical factor occurred in September 2017. China stated they had been banning #Bitcoin and it dropped by over 30%. But #BTC made a full restoration in few weeks then hit new all time highs in December that yr.
As the saying goes ‘history doesn’t repeat itself but it sure does rhyme’ pic.twitter.com/Xi8euPK916
— John Satoshi Wick (@JohnSatoshiWick) September 24, 2021
For dealer and analyst Rekt Capital, in the meantime, the sell-off merely highlighted the inexperience of newcomers to the market.
“BTC investors who have been in the market for a while have heard many different iterations of FUD from China. But newer investors, unarmed with this experience, are the ones who are affected most,” he tweeted on the day.
“Their panic selling is what is fuelling this recent downside.”
$38,000 help untouched
The transfer nonetheless erased a number of days of BTC value positive factors, together with these ensuing from Twitter launching Lightning Network tipping.
Related: Bears purpose to pin Bitcoin value beneath $46K main into Friday’s $3B BTC choices expiry
If to have a look at spot market composition, nonetheless, it was clear that the promoting had had little influence on help, this nonetheless amassing beneath $40,000.
As Cointelegraph beforehand reported, “line in the sand” ranges for bulls had already been set within the mid-$30,000 vary.
A preferred minimal month-to-month shut value for September, within the meantime, nonetheless stands at $43,000.