Bitcoin has been on a recovery track since its "ban" in China.
China planned to ban trading of bitcoin and other virtual currencies on its exchanges. China Business News reported that the city of Shanghai has verbally halted bitcoin exchanges. The website Crypto Coins News further cited a local newsletter that said banning bitcoin exchanges was "certain."
However, China's ban on Bitcoin and other cryptocurrencies may be temporary, to appease international agencies and hardcore communist members ahead of the upcoming Communist Party convention.
China's big government and banks cannot tolerate Bitcoin. It threatens their very existence.That's in the long term, though, when Bitcoin has the potential to replace the yuan in everyday transactions, and as a monetary asset.
In my opinion, the markets overreacted to the China news. In the short term, it was bad news, but long term the fundamentals are unchanged.Technical analysis reported by CoinDesk, the cryptocurrency news site, suggested a break of $3,800 would open to $4,200 or higher.
