Almost two weeks after Bitcoin surged 42% and hit a five-week high at $10,350, the coin continued to struggle to break the $9,500 resistance point, but it couldn't and traded within a limited range above $9,000 levels.
At the beginning of this week, the Bitcoin currency abandoned the psychological support level of $ 9,000 to fall to its lowest level in three weeks at $ 8,593, with the fading of the positive impact of the statements of Chinese President “Xi Jinping” to blockchain technology and urging his country to make the most of this technology in order to serve Chinese economy.
And the bitcoin currency recorded last week the second consecutive weekly decline with losses amounting to about 2%, and the largest cryptocurrency in the world still needs positive motives that push its prices higher, so expectations are increasing that the bitcoin currency will head for more declines to reach the $8000 level.
And it seems that the crypto market XM Arabia Currently suffering from a state of uncertainty, especially with the lack of a strong and stable trend for cryptocurrencies, the digital market currently still lacks catalysts that facilitate the expectation of the rise or fall of prices.
Positive statements from the second largest economy in the world
It is worth noting that bitcoin received a strong boost several weeks ago, following Chinese President Xi Jinping’s comments on the need for his country to speed up its adoption of blockchain technology. during the year 2017.
Many experts believe that the Chinese president's general support for blockchain technology and urging his country to take advantage of it will force the United States and other major countries to adopt this technology, and perhaps this may boost the bitcoin currency.
These statements have created a general state of optimism towards crypto markets, but some are concerned that this optimism is premature, because China is developing its proposed digital currency and is unlikely to lift the ban on Bitcoin and other cryptocurrencies, so they expect that Bitcoin It will continue in the downward curve.
Analysts also believe that with China's announcement of the launch of its cryptocurrency by the Chinese Central Bank during the next two or three months, this will be a strong positive incentive for cryptocurrencies.
Although China officially endorses the blockchain technology behind digital currencies, criticism continues from other countries, as former European Central Bank President Jean-Claude Trichet directed a stinging criticism of bitcoin during the Caixin Conference in Beijing, where he said that the cryptocurrency bitcoin lacks to the properties of real currency, and that it cannot be a substitute for it.