After the shock of All Time High 8888 Yuan (CNY) which dropped prices by 20%, I expect BTC to recover the former trend line (not the crazy one in late December 2016 which took BTC to touch the All Time High unreasonably).
This will move the price up and down correcting every now and then to the normal trend line.
After the intervention of People Bank Of China (PBOC) to revaluate the Chinese Yuan (USDCNY) in early Jan 2017, we see a devaluation process of the twin Offshore Yuan (USDCNH) which will bring new pressure to devaluate Yuan further. This will bring prices up denominated in Yuan which will induce, probably, new rises in USD denomination in a circle retro-feedback process which will put pressure on prices to rise.
China new year is on Jan 27th but do not know how can this play out in the price. (Probably overoptimism).
All and all, my conclussion for the next 3-4 weeks.
- New drop to lows (20% probablility)
- Back to trend line (80% probablity)
- Back to "crazy-rush" trend line (20% probablity)
This will move the price up and down correcting every now and then to the normal trend line.
After the intervention of People Bank Of China (PBOC) to revaluate the Chinese Yuan (USDCNY) in early Jan 2017, we see a devaluation process of the twin Offshore Yuan (USDCNH) which will bring new pressure to devaluate Yuan further. This will bring prices up denominated in Yuan which will induce, probably, new rises in USD denomination in a circle retro-feedback process which will put pressure on prices to rise.
China new year is on Jan 27th but do not know how can this play out in the price. (Probably overoptimism).
All and all, my conclussion for the next 3-4 weeks.
- New drop to lows (20% probablility)
- Back to trend line (80% probablity)
- Back to "crazy-rush" trend line (20% probablity)