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Bitcoin gets additional selling pressure from China shows data

Bitcoin’s price has not done well over the past week and one reason is the additional selling pressure from China. The country’s authorities have ordered that exchanges must be withdrawn from users and their holdings before December 31st. This led to selling pressure from China, which dragged the price of Bitcoin down. This can also be confirmed by the fact that the selling pressure is high during the Asian hours and significantly lower in the European hours. While the short-term scenario looks bad, it could be great for 2022.

Why should we be bullish?

With the deadline to ban users from the exchanges in China, we can expect the pressure to sell from the country to ease. We hit lows of around $ 46,000 on the Bitstamp exchange and other platforms as well. And unlike last time, the China problem doesn’t seem to be having too much of an impact. Miners have already emigrated from the country, and most of the stock exchanges have also been cleared.

Image source: Zee News

This is likely to be the last bearish move we see due to China as the country’s crypto deadline has passed. If things have stabilized a bit by now, it is not unlikely that a quick move higher is expected. As sales wear off, we can expect the bull market to start from there. The selling pressure in China can also help to understand why, unlike every bull year, December did not have a strong rally this time around.

January was mostly bullish for Bitcoin and a recovery rally could be near if the China FUD wears off. Jesse Knutson, a blockstream analyst, said, “This is also a potential source of optimism about the future as the Chinese stock market overhang will be eliminated from the end of this month.”

2022 will be fine

It is very obvious that 2021 was not the year we hit the top of the bitcoin bull market. This is in part because of the expanding Bitcoin cycles and the FUD that surrounds them. Many analysts say that Bitcoin’s spike in this bull market could be anywhere between the 2nd half of 2022 and the 1st half of 2023. So I think it makes perfect sense to be optimistic this year.

What do you think of the December Bitcoin slump due to the additional selling pressure from China? And do you think now that things have changed we can expect a bull run? Let us know in the comments below. If you found our content informative, like it and share it with your friends.

Also read: Robinhood will soon be launching cryptocurrency wallets.

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