The price of bitcoin to US dollar fell to a new four week low with reports that BTCC, a Shanghai-based bitcoin exchange, will be shutting its doors to domestic trading operations at the end of the month. The announcement has not helped the market for cryptocurrency at all and continues to support rumors that regulators would be getting ready for an actual ban on domestic bitcoin exchanges.
Bitcoin markets have been seeing liquidation over the past few weeks as fears continues to increase about the People’s Bank of China following suit. The price of Bitcoin has fallen by more than ten percent within the last day or so and it continues to fall on Thursday September 14; the time of this article.
Over all, cryptocurrency in general, is down by nearly 20% on a month to month basis. But many don’t think that this drop is a reason for surprise. In fact speculators say that this action in price could be in favor of a lower base around $3,000 for bitcoin.
Bitcoin has already come back in price by fifty percent of the rally the cryptocurrency saw between July and September. Other indications from a technical perspective like the Relative Strength Index or RSI has also indicated that prices of Bitcoin could be more oversold than anything at the moment.
In the long-term, many are anticipating a lower move. Time will certainly tell what will happen next but the general consensus suggests to be on the look out for $3,000 bitcoin prices.