Sound Familiar? September 2017 China Bitcoin ‘ban’ Sparked $20K All-time High In 3 Months
PHOTO from COINTELEGRAPH
Read the full article by William Suberg
The latest debacle over China’s anti-crypto stance has a firm historical echo to it — and old hands are more than aware.
Bitcoin (BTC) dipped deeper to challenge $40,000 support during Sept. 24 as the dust settled on what analysts stressed was a false alarm from China.
Long term Bitcoin holders are no strangers to crypto bans spurring in communist China. Coincidentally, September 2017 was the last time before May of this year China attempted to ban cryptocurrency. The announcement left the public in fear of what some though could be the end of digital currencies. However, a short couple weeks after tumbling following the news Bitcoin had recovered. Not only did BTC recover, it went on to hit an all time high just three short months later.
As noted in the article referenced, $38,000 has remained untouched, indicating support is holding tough regardless of the news coming out of China.
Another thing to keep mindful of is that $3BN worth of BTC options contracts were set to expire today, which could be another cause of the recent dip.
“Between $38,000 and $40,000: 3,390 calls vs. 8,695 puts. The net result is $21 million favoring the protective put (bear) instruments.
Between $40,000 and $46,000: The net result is balanced between bears and bulls.
Between $46,000 and $50,000: 11,820 calls vs. 3,050 puts. The net result is $42 million favoring the call (bull) options.
Above $50,000: 16,370 calls vs. 1,400 puts. Bullish instruments would have a $75 million lead.”