4-hour chart of BTCagainst USD, at a price of $42,324 (own elaboration, in Tradingview).
The level remains in a temporary downtrend, determined by the Parabolic Sar, although marked by a short space margin, typical movement of the third week of the month (quarter also in this case), in which the settlement of CME futures on the New York Stock Exchange takes place. Fundamentally, we have news from China, where the Socialist State declares cryptocurrency activity “illegal.” What does this mean? Two things. First, it is not illegal to “hold” cryptocurrencies, but it is illegal to trade them. Nothing happens, because China is not known for its trading activity (mining is). The second is that it is clear that the Government fears that, in the face of monumental events such as Evergrande, there will be a redistribution of savings from its fiat currency to cryptocurrencies, for fear of the depreciation of the former, which would deepen its problem. So there is nothing wrong either, since, if the latter were to happen, what it would cause is an unquestionable increase in the price of BTC. China evidences that popular saying “They bark; the sign that we ride”… We will keep you updated on new developments.
Juan Carlos Araya
Founding Partner and Fund Manager DIG Fund