From a top down approach, it’s clear that sellers are in charge as BTC is down a massive 11 percent thanks to Sep 5 selling spree. Regardless, there is optimism for cryptocurrencies and Bitcoin in particular stemming mainly from bullish fundamental developments. This divergence means there is potential for BTC to recover in coming days. Because of yesterday’s double bar reversal pattern right at $6,000, a foundation for a potential recovery above this descending wedge is probable.
Around this time last year, Bitcoin and China were synonymous. Fast forward and the situation is so out of tune thanks to the Chinese radical interpretation of cryptocurrencies and their enforcing a blanket ban on Bitcoin trading, ICOs and exchanges in their bid to “protect the economy and the fledgling Yuan”.