Bitcoin prices crashed further on Friday as the reports that the Chinese regulators would shut down the bitcoin exchanges turned out to be true after all. It was indeed a big blow to the bitcoin market as a whole and to the Chinese bitcoin traders and this was clear from the price fall that followed. The Chinese are the largest traders and miners in the bitcoin market and so a ban there, just a a couple of weeks after the ban on the ICOs should setback the bitcoin market by quite a bit.

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Bitcoin Prices Crashes But Bounces Later

But there is a general feeling that this is not the end of the market or the bitcoin network in China and that the authorities are doing this as a quick fix action to control the market until there come up with regulations and mechanisms to exercise more control over the bitcoin and crypto market as a whole. This is likely to take a few months and as this happens and the market evolves and matures, we should see them coming back into the market in a more restricted and regulated manner. Rarely do regulators like to see systems go uncontrolled and this is just the start of that measure.

Bitcoin 4H
Bitcoin 4H

The Ethereum prices also crashed as a result, as it usually follows the trend of the bitcoin market and the Chinese action is likely to affect all cryptos. The ETH prices crashed below the $270 mark and went as low as $220 before bouncing and it now trades just below the $270 mark but the short term trend is clearly bearish and so the traders can look for some more weakness in the prices.

Forecast

Looking ahead to the rest of the day, the bounce from the lows in both the ETH and BTC markets should give some cheer to the bulls but it is going to take a lot more effort and time for the bulls to push the prices through some important resistances. But with the bearish outlook in the short term, we do not expect any major advances in the BTC or ETH market anytime soon.

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