We see that after the PBOC intervention the price seems to have stabilized (sort of frozen)
While it is certainly not very encouraging for die-hard short-term traders which are volatility hungry, for the rest of the humanity it can only be welcomed since the price moves in a relatively narrow range today, and it still keeps well above pre-December levels at that (~750 dollars per coin). I wouldn't make any assumptions as to where the price might go in the near future, since I guess we should wait some time (say, a month) to see how real is support at current levels. In other words, we may still go lower to sub-800 levels
We are not talking about the price. The price is no problem even if its going down. We all know that BTC has a very long term trend going up. The problem is the volume. Coindesk has released and article this week that the dwindling volume should be a cause for worry. How true that is, I dont know. According to the article some Chinese BTC traders have shifted to trading stocks after the PBOC investigation.
That seems to be quite consonant with my own apprehensions
I don't know if the Chinese traders did actually switch to trading stocks (or whatever), but if the former volume that we saw at Chinese exchanges wasn't fake (or was only partially fake) and it went heavily down nowadays, we could well expect the price to go further down as well. On the other hand, how the price cannot be a problem if its basically the product of volume? With less volume, the price will certainly go down since it just can't rise consistently on a thin market (it's volatility that could only increase)