On Tuesday, Ray Dalio from Bridgewater Associates, the founder of the world’s largest hedge fund, said Bitcoin is "in a bubble". Euro would have lost not less than 1% on such a comment, while Bitcoin kept on rising. It's ready to confirm the breakout of $4,000 strong resistance level.
On September 15, Bitcoin touched 1.5-month low at 2,997.7 on the news from China.
First, we learned that one of the largest Chinese exchanges – BTC China – would be closed on September, 30. That was the first major setback on Bitcoin.
Second, Chinese financial authorities announced the plans to ban Bitcoin exchanges from operating in the massive emerging market. And it pushed Bitcoin to early August lows.
However, crypto world is not ready to give up. On Tuesday morning, cryptocurrency showed an attempt to break above $4,000 again, rising more than 20% from last Friday lows.
The thing is that traders found the way to escape from the Chinese regulation. There is a growing belief in the market that alternative exchanges or loopholes in regulation will be found.
What we can say for sure – the market is not ready to lose faith in crypto currencies. The major concept of Bitcoin is the absence of regulation, so any regulation attempts of Chinese or any other government will be rejected somehow.
I believe the current levels of Bitcoin look really attractive for buying, as there is big potential to reach $4,400 level once $4,000 breakout is confirmed.