Last week, Turkey banned cryptocurrency payments, a move partially responsible for the big Bitcoin drop after the cryptocurrency, along with Ethereum and Doge, soared to new heights amid the Coinbase IPO entusiasm.
Today, while the narrative in the financial media is all about Bitcoin bears and their pessmisstic prognostications regarding an imminent and massive selloff, China has changed its tune regarding the cryptocurrency, now calling it an "investment alternative." Flex Yang, CEO and founder of Babel Finance, a crypto financial services company, called the comments “progressive” in an interview with CNBC on Monday.
“I think it is quite significant and is definitely different to their previous statements or positions on public cryptocurrencies,” Vijay Ayyar, head of business development at cryptocurrency exchange Luno, told CNBC in an email according to the news site,
While the change in attitude of the PRC move won't stop any selloff, the good news may have helped cancel the bad Bitcoin news from Turkey at the very least. Bitcoin's price seems to have stablized for now,
Back to the bears. How low do they thnk Bitcoin will go? Well, some say as low as $20,000m while others think a pullback to $40,000 is more likely. Still, that would represent a signficant decline from around $55,800, where it trades as of Wednesday 12pm EST.
Pankaj Balani, CEO of Delta Exchange, in emailed comments, warned that a slide to around $40,000 was possible if there was a "sustained breach of the short-term price," according to Marketwatch.com.
The “50 DMA has been a crucial support for Bitcoin since October last year and it has held this support every time in this rally. This time around however, we see Bitcoin’s momentum fizzling out and BTC struggling to hold this support,” Balani said.
Researchers at JPMorgan are a bit less bearish, but by no means are they bullish short-term, especially if the cryptocurrency cannot get back up to $60,000 ASAP.
The bank's Nikolaos Panigirtzoglou wrote in a Tuesday report that any loss in momentum and a failure to retake the $60,000 market might spark a serious selloff.
“If the bitcoin price fails to break out above $60,000 soon, the momentum signals shown in Figure 9 will naturally decay from here for several months, given their still elevated level,” the analysts wrote in the note.