The pullback in cryptocurrencies was a buy opportunity.
In fact, every time China makes a threat against cryptocurrencies, we see an inevitable pullback, followed by an inevitable rally.
Sure, according to the People’s Bank of China, services offering trading, order matching, token issuance, and derivatives are now prohibited, as are overseas cryptocurrency exchanges that provide services in China.
However, traders are shrugging if off again. “China has announced tough new measures on crypto six times since 2013. Bitcoin fell an average 4% in the week after the announcements but was up an average 46% a year later,” according to CNBC.
At the moment, Bitcoin is back above $47,619 after falling to $40,693. Ethereum is back above $3,200, with Cardano above $2.
Even cryptocurrency miners are thriving on the rebound after becoming wildly oversold.
- Marathon Digital Holdings (MARA) just caught double bottom support at its 200-day moving average. From here, MARA could run from $32.85 to its prior high of $45
- Riot Blockchain (RIOT) just caught triple bottom support dating back to May 20221. From a current price of $26, RIOT could test prior highs of nearly $40 shortly.
- Bit Digital (BTBT) appears to have bottomed out around $8, and could run back to $15 near-term, as cryptocurrencies and miners recover.
