http://finance.jrj.com.cn/tech/2017/09/08211823086220.shtmlWeekend is near, and China tested their power again with their ICO news. Well now they spread some rumors about a ban on actual Bitcoin (not just ICOs) to crash the market.
They put shorts, they launch the news, they make a killing.Next week we will recover and China will have even more BTC. This is how China is stealing BTC from the hands of weak-handed panicsellers, they have been doing it for years and will continue to do so for as long as panicsellers panicsell with ban news.
Even if the ban was real, it's irrelevant, the protocol works and it will recover, and then China will have nothing else to FUD with, which is why they will not actually ban it.
This part of your post is completely right in my opinion.
The so called report collected from trusted sources within Chinese officials is probably nothing more than something that a trader who had significant amounts of short positions piled up, leveraged, ready to make a profit commissioning these news reporters to make up news from thin air.
People are starting to realize this now, and price has rebounded back to $4350. Nothing has happened to exchanges, nothing at all. They have all received no news whatsoever of a potential policy change from Chinese regulators. I predict the price to go to $5500+ by the start of next month as the news is confirmed fake and people become confident in trading again.