Bitcoin Reaches New All-Time Highs Amid Soft Mining Ban in China

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Bitcoin (BTC) was able to reach a new all-time high after it surpassed $19,8’00 in some exchanges. This is one of the moments Bitcoin holders were waiting since December 2017. The new all-time high reached by Bitcoin comes exactly after a soft mining ban imposed on miners in China. 

Bitcoin Skyrockets to All-Time Highs

After several years waiting, Bitcoin was able to surpass its previous all-time high registered in December 2017. The largest cryptocurrency surpassed $19,800 in some exchanges, including Binance, Coinbase and many others. 

It is worth taking into consideration that while in 2017 Bitcoin moved from below $1,000 to $20,000 in less than a year, this is not the case now. BTC has experienced massive sell-off this year. However, in the last few weeks, the price of the virtual currency skyrocketed. 

The new Bitcoin all-time highs come with bad news for miners in China. The government has pushed to disconnect miners from the electricity supply in Yunnan Province. According to Wu Blockchain, on November 30, miners in both Baoshan and Yunnan stopped receiving electricity from power stations. 

China is known for being a centre for Bitcoin miners. Losing part of these miners could reduce Bitcoin’s security but increase decentralization. Several studies revealed that Bitcoin miners in China represented around 60% of the total hash rate of the Bitcoin network. 

Despite the recent price increase for Bitcoin and other altcoins, there are some analysts that remain bearish. According to Konstantin Anissimov, Executive Director at CEX.IO, talked with UseTheBitcoin and shared his views on the market. 

He mentioned that multiple technical indicators are pointing to further losses. By following the TD Sequential indicator, we can see that there are selling signals on the weekly. Furthermore, he mentioned that the bearish formation developed as green nine candlesticks that suggest a retracement that could last even an entire month. 

About the crypto market, Mr. Anissimov stated:

“A spike in selling pressure behind BTC and ETH may help validate the bearish formation. Under such circumstances, the pioneer cryptocurrency may see its price drop towards $13,000 and the smart contracts giant to $400. It is worth noting that only a weekly candlestick close above the recent highs will invalidate the bearish outlook and lead to another leg up.”

Currently, Bitcoin is being traded around $19,400 and other altcoins are also registering gains in recent hours. However, Bitcoin remains as the main player with its new all-time highs. 

Via: 2Usethebitcoin.com

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