Almost two years after China’s ban on cryptocurrencies, there are many indications that the citizens of the world’s most populous country have found ways to continue investing in digital assets.
While the average monthly value of cryptocurrencies flowing into China fell by half in the year after the ban was introduced, we are still talking about a flow of as much as USD 17 billion. This data was provided by Chainalysis. Interestingly, even the bankruptcy proceedings of the FTX exchange show that as much as 8% of the customer base of this failed exchange were Chinese citizens. Theoretically, cryptocurrency trading is prohibited for the Chinese at home and abroad, but as you can see, it is difficult to enforce.
It can be assumed that many exchanges simply allow Chinese investors to set up accounts on their platforms. It is difficult to explain this phenomenon only by the fact that the Chinese use VPN. In order to use the exchanges, they must go through the KYC procedure, which consists in verifying their identity. But that’s not all. The well-known cryptocurrency exchange Huobi also offered Chinese citizens the opportunity to access its platform, using the option to register as … citizens of the Dominican Republic.
For now, the People’s Bank of China has not commented on evidence that Chinese citizens continue to trade cryptocurrencies. Meanwhile, many experts speculate that Beijing may now be considering lifting the ban on investing in digital assets. These discussions are driven mainly by the cryptocurrency-friendly stance of the superpower’s special administrative region, Hong Kong, which many believe is quietly supported by mainland China.
Moreover, the emergence of more Chinese-compliant tokens such as conflux (CFX) is likely to create space for dialogue and prompt the government to loosen restrictions.
Technical Market Outlook:
The ETH/USD pair has failed to break through the key technical resistance located at $2,049 and only a sustained breakout above this resistance level will open the road towards the swing high seen at $2,140. The market reversed sharply from the level of $2,019 and now is trading below the 50 and 100 MA on the H4 time frame chart. The next target for bears is seen at $1,807 and $1,787. The weak and negative momentum on the RSI (14) indicator on H4 time frame chart supports the short-term bearish outlook for ETH.
Weekly Pivot Points:
WR3 – $2,016
WR2 – $1,941
WR1 – $1,902
Weekly Pivot – $1,871
WS1 – $1,829
WS2 – $1,798
WS3 – $1,726
Trading Outlook:
The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August 2022 at the level of $2,029. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.
The material has been provided by InstaForex Company – www.instaforex.com
Crypto Industry News:
Almost two years after China’s ban on cryptocurrencies, there are many indications that the citizens of the world’s most populous country have found ways to continue investing in digital assets.
While the average monthly value of cryptocurrencies flowing into China fell by half in the year after the ban was introduced, we are still talking about a flow of as much as USD 17 billion. This data was provided by Chainalysis. Interestingly, even the bankruptcy proceedings of the FTX exchange show that as much as 8% of the customer base of this failed exchange were Chinese citizens. Theoretically, cryptocurrency trading is prohibited for the Chinese at home and abroad, but as you can see, it is difficult to enforce.
It can be assumed that many exchanges simply allow Chinese investors to set up accounts on their platforms. It is difficult to explain this phenomenon only by the fact that the Chinese use VPN. In order to use the exchanges, they must go through the KYC procedure, which consists in verifying their identity. But that’s not all. The well-known cryptocurrency exchange Huobi also offered Chinese citizens the opportunity to access its platform, using the option to register as … citizens of the Dominican Republic.
For now, the People’s Bank of China has not commented on evidence that Chinese citizens continue to trade cryptocurrencies. Meanwhile, many experts speculate that Beijing may now be considering lifting the ban on investing in digital assets. These discussions are driven mainly by the cryptocurrency-friendly stance of the superpower’s special administrative region, Hong Kong, which many believe is quietly supported by mainland China.
Moreover, the emergence of more Chinese-compliant tokens such as conflux (CFX) is likely to create space for dialogue and prompt the government to loosen restrictions.
Technical Market Outlook:
The ETH/USD pair has failed to break through the key technical resistance located at $2,049 and only a sustained breakout above this resistance level will open the road towards the swing high seen at $2,140. The market reversed sharply from the level of $2,019 and now is trading below the 50 and 100 MA on the H4 time frame chart. The next target for bears is seen at $1,807 and $1,787. The weak and negative momentum on the RSI (14) indicator on H4 time frame chart supports the short-term bearish outlook for ETH.
Weekly Pivot Points:
WR3 – $2,016
WR2 – $1,941
WR1 – $1,902
Weekly Pivot – $1,871
WS1 – $1,829
WS2 – $1,798
WS3 – $1,726
Trading Outlook:
The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August 2022 at the level of $2,029. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.
The material has been provided by InstaForex Company – www.instaforex.com
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