We’re near the end of the week with the price of Bitcoins drastically different since our last update two days ago, a change reportedly once again due to Chinese exchanges, who after talks with the People’s Bank of China pulled the hand brake on Bitcoin sales.While some correction was expected from the bearish wave that started forming on Wednesday, nobody really expected the price to take such a dive.Just like it has been for the past month or so, the Bitcoin world is again buzzing with talks of China’s role in the survival of the cryptocurrency.But while prior market panics have taken massive cuts to the value of Bitcoins, it now appears that those hits are becoming slower and smaller, once again giving some credibility to predictions that Bitcoin is moving from weaker to stronger hands.Right around the time news started spreading about new restrictions from China’s side, the Bitcoin price took a steep plunge from $1,053.49 to $935.19 in the course of only two hours.Since then it has been struggling to regain ground and find support at the $960 mark, with little hopes of topping $1,000, for now.

The trading market is noting high interest, which is to be expected, with the current volume being $384,524,000.The market cap, on the other hand, has dropped significantly to $15.7 billion.Judging from the present winds and high volume, any major price upticks are unlikely, for the time being.Our market analysis shows that sellers are holding a strong grip on the market, with all 12 moving averages and 7 out of 12 oscillators being in the sell zone.The SMA 100 is still safely above the SMA 200, hinting at an upward path, but the gap between the averages is narrowing, so don’t get your hopes up yet.However, short term analysis also shows a buyer pressure forming, with the RSI already hinting there is still some bullish pressure left.Right now, the market is predominantly pro-sell, hinting at further tests for the price, while the buyer pressure might be enough to keep it within the $960-970 range.As always, keep a close eye on any changes, especially in times like this, because if bears keep hitting the market, we might see another break below.

The three biggest China BTC exchanges by volume have taken measures to stop Bitcoin withdrawals as a result of pressure and discussions coming from the People’s Bank of china.OK coin, BTC China, and Huobi, all issued statements on Thursday, saying that the measures were introduced due to a request from the PBOC, and they will be dropped once updates to the exchanges’ compliance system kick in.Out of the three exchanges, only BTC China still allows withdrawals, but only with a 72-hour review process, while OKCoin and Huobi have completely suspended them.However, according to official statements from the exchanges, conversions of BTC to Yuan and back were not affected, only the withdrawals, since the PBOC’s main focus, as has been reported, was to curb capital flight.The reason for suspending their services, according to Bloomberg, was due to warnings from the PBOC that any Bitcoin exchanges who are found to violate the rules on managing foreign exchanges, payments, and money laundering, will be closed.

Thus, the exchanges will be doing upgrades to their system, which are expected to last about a month for Huobi and OK Coin, while BTC hasn’t specified a time frame.bitcoin kurs googleBitcoin took a pounding in the last 24 hours, dropping below the $500 mark on the popular Mt.Gox exchange before rebounding.italy bitcoin regulationAs TechCrunch’s John Biggs wrote this morning, “China’s biggest Bitcoin exchange, BTCChina, has stopped accepting deposits in Chinese yuan,” which added to the currency’s decline.may dao bitcoin khungHowever, the fall of Bitcoin’s value has been underway for some time, making the Chinese news merely component to the larger story: Bitcoin is losing momentum.bitcoin lua

What pushed Bitcoin to $1,200 is the precise quantity that is taking it down.bitcoin zar priceHype, media interest, and speculative hope drove it up, and a lack of hype, media disinterest, and falling speculative buys are driving it down.bitcoin dan islamBitcoin is trading at $606 at the time of writing.I made fun of Bitcoin when it initially hit $645: “Currently trading around $645 per coin, it has never been worth more, or generated more headlines that I can recall.The two are likely connected.” Yes.The rise of Bitcoin was a classic bubble.Here’s the Mt.Gox chart of Bitcoin’s price on a daily basis: So, to see a huge Bitcoin price correction isn’t surprising in the slightest.Let’s go over a few past entries on why Bitcoin was, and is a bubble: The current rally is being fueled by the usual combination of presumed scarcity, an overzealous investor class, and truckloads of optimism.

So, things will calm down in a bit, with a decent price correction.History teaches us that much.Also, can I sell you this tulip bulb.And: People keep saying this isn’t a bubble, and it confuses me.Of course this is a bubble.It’s a far too rapid increase in the price of a financial instrument that is unmoored from any inherent value that is being bid up by aggressive individual speculation.What else is that?Bitcoin has risen up to $621 from $606 since I started writing this short blog post.What does matter is that the price of Bitcoin has long outstripped the utility that it can provide.This became far more true after the implosion of Silk Road.Until Bitcoin has benefits commensurate with its price, it will remain overvalued.For now, the dollar cost of each coin is far higher than the value you can derive from it — its use for things that you can’t use other currencies for, or wouldn’t want to — aside from its status as an instrument of speculation.Speculative demand never keeps the value of an asset class high over time.