Bitcoin bounces back but hits a snag

Bitcoin experienced a brief dip to $40,000 last week Friday after the Chinese government implemented a ‘blanket’ ban on cryptocurrencies. This announcement by the Peoples Bank of China doubles down on their announcement made earlier this year that was mainly focused towards mining farms. This most recent announcement covered any cracks left for Chinese people to have any involvement in the digital asset space, and leaves only one contender for this sector of finance in China unsurprisingly, being digital Yuan.

PBOC -

“Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity, Workers at foreign crypto exchanges will be investigated.”

This strict totalitarian stance helped Alibaba to make new 52-week lows today. While Bitcoin has for the most part already recovered from this dip.

Bitcoin futures are currently trading lower from their closing price in New York today $800 or 1.8% at $42,340. This doesn’t look good for the world’s first digital currency as Bitcoin futures was unable to close above the 50-day but was able to close above the 200-day moving average was neutral, technically speaking. However, this recent drop back below the 200-day M.A. puts the re-test of support at $40,000 up on the agenda board for this week.