Despite rumors of a ban on mining in China, there was some bullish action last night.
Despite rumors of a ban on mining in China (which produces more than 60% of bitcoin), there was some action last night. Even if this interdiction were to take effect, it would not necessarily have a negative impact on the price as the average cost of production would be higher and the decentralization would increase (read: "What is Bitcoin?" in our News section).
We believed in a breakout after the price broke the resistance and test the 5,500$ in a few hours. However, bitcoin did not hold at this level and the price lost nearly 4%. This abrupt surge followed by this significant dump generated volumes more than 70% higher than yesterday. For now, bitcoin has stabilized at its key level of 5,200$. However, the altcoins market suffered from these violent movements with an overall loss of more than 3%.
Actual support/resistance : 5,200$/5,300$.
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