Bitcoin (BTC) – The growing concern for Bitcoin’s high energy consumption rate through mining has handed the cryptocurrency a further clamp down in the world’s most populous country, China, as the country’s National Development and Reform Commission (NRDC) reportedly confirmed that it will sanction all Bitcoin mining activities in the country.
While this stands as an extension of the country’s embargo on cryptocurrency activities which began in 2017, the crypto dad, Bitcoin, seems to be shredding off the waylaid news by trending up the graph rather than the expected downward wend, because China plays a mighty role in Bitcoin mining.
Bitcoin Signals A Potential Rally To $7,500 Mark As It Repeats Fibonacci Cycle
Often, history is a great determinant of the possible trend a cryptocurrency will follow in the future. As such, analysts and market experts are fond of deciphering previous market charts to make possible forecast, especially with the Fib retraecement levels which remains an important tool in determining entry and exit points.
The long term resistance point of Bitcoin was exceeded on April 1 after the digital asset resumed on an upward trend which made craving investors ask for the next trend of the crypto trailblazer.
The year 2014 – 2015 bear market is somewhat a model of the present market. In a similar manner to what happened early last week, the value of Bitcoin surged to a little below $500 in late 2015 after hitting the 0.618 Fib level.
If history rhymes and Fibonacci retracement is a real thing,
bitcoin will rise to $7.5k and then will have a massive correction to $4.3k.
That will be the last attempt of bears to come back.
🔥🔥🔥#bitcoin $BTC $BTCUSD pic.twitter.com/CqKUnjBvI7
— CryptoHamster (@CryptoHamsterIO) April 8, 2019
Even though there are predictions that there might be a plunge to $4.5k after hitting the $7.5k, the above analyst predicted that this would be last bear attempt for the cryptocurrency.
China’s Ban on Cryptocurrency Mining
On Monday, China’s National Development and Reform Commission (NDRC) declared it was demanding the public opinions on which industries it should put on the country’s encouraging, restricting and eliminating list. The draft of the list, which was first released to the public domain 8 years ago, now has Bitcoin mining as one of the sector to be scrapped.
Although there is a strict regulation in place to restrict crypto trading activities in the country, China has the world’s largest computer hardware designed to mine Bitcoin (BTC) and other cryptocurrencies.
There was no specific date and plan for the elimination of Bitcoin (BTC) mining, this shows that the activities would be eliminated in a quick succession, said the document. NRDC awaits the public opinion on or before 7th May 2019 before deciding fully on what to do.
According to Securities Times, the drafts list “distinctly reflects the attitude of the country’s industrial policy” towards the cryptocurrency industry. For the past 2 years, the cryptocurrency sector has been undergoing severe scrutiny in China, as the country’s regulatory agencies started banning initial coin offerings and closing local cryptocurrency trading exchanges.
There has been severe limitation of cryptocurrency mining in China, which forces even the world’s largest firms to ply their trades elsewhere.
Some Chinese companies affected by the strict regulation are among the biggest manufacturers of Bitcoin mining gear in the world, and 3 of these companies filed for initial public offerings in Hong Kong, in order to save them some billions of dollars.
However, Canaan Inc and the world’s largest manufacturer of Bitcoin (BTC) mining gear (Bitmain Technologies) has since allowed their applications expire.