Bitcoin regains poise despite PBOC jolt

BTC/CNY on OKCOIN exchange is trading 1% higher on the day around 7550 levels, although prices need to break above the previous day’s high of 7559, given the Wednesday’s candle was a long legged Doji. 

Such a move would signal continuation of the rally from the January 12 low of 4885 levels. 

BTC/CNY dropped to a low of 6900 on Wednesday after a Bloomberg report said the People’s Bank of China (PBOC) is meeting with several local bitcoin exchanges to discuss a number of concerns - marginal lending, money laundering, and violation at FX rules. 

Bitcoin crashed in January - from 8888 (Jan 5 high) to 4885 (Jan 12 high) - on fears the PBOC would crackdown on trading. Thus, Wednesday’s sell-off was short lived as the bad news was already priced-in in January. 

BTC/CNY Technical Levels

A daily close above 0.7559 (previous day’s high) would open up upside towards 8000 (zero figure). On the downside, breakdown of support at 7351.15 (5-DMA) could yield a sell-off to 7172 (10-DMA).