Are we back in the green or is this just a bounce before the next dip?

The last three days have been intense for just about everyone in the crypto market as Bitcoin took a major dive past some serious support lines and into the low $6,000 range. This came as a surprise to many investors who were celebrating after most major cryptocurrencies booked solid gains on Saturday.

So what caused the latest slide?

China announced a full ban on crypto which, not surprisingly scared the crap out of investors around the world who saw the world’s most populous country leaving the crypto game for now. Of course this created more fear that other countries would follow and coupled with some other bad news a number of investors started dumping Bitcoin like it was going out of style.

Here’s a look at Bitcoin’s price movement over the last week, brace yourself, it’s a bit hard to look at:

bitcoin-feb-declines

Reddit quickly turned from the HODL crew to the “peace I’m out guys this is getting too crazy” crew as many long-time crypto HOLDers decided to throw in the towel. If anyone thought that weak hands had been flushed out in January, it’s safe to say that even relatively strong hands were flushed out over the last few days.

At the same time the stock market plunged more than 4% booking it’s largest drop in almost eight years which only seemed to add fuel to the fire.

Meanwhile, while the sky was falling around us, lots of good news was coming out. Popular traditional investment site The Motely Fool covered Ripple, Ethereum got coverage in a Forex publication which cited that the crypto seemed almost immune to the carnage going on around it, Charlie Lee even came out and said he’s bullish on both Bitcoin and Litecoin. Still, despite lots of good news it looks like the bears owned the market…until today.

This morning cryptocurrency investors woke up to something they hadn’t seen for days, a screen full of green. Just about every major cryptocurrency bounced up as the US Senate held hearings on cryptocurrencies:

The gains came amid a U.S. Senate hearing on virtual currencies in which J. Christopher Giancarlo, chairman of the Commodity Futures Trading Commission (CFTC) and Jay Clayton, chairman at the Securities and Exchange Commission (SEC) testified. The Senate is examining the role of the SEC and CFTC in regulating virtual currencies. (Source – Reuters)

So now the big question is. Are we finally starting to see a retracement back up towards the highs that we saw in December or is this just another bounce on the way further down. No technical analysis is going to save us now, only time will tell, but after a rough few days I know some of us are going to sleep a little bit better tonight.

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