Simply because the lack of Chinese bag holders to buy and hold our bags.
every day 2k of bitcoin created, who is going to buy them?
huge amount of bitcoins gonna be sold by Chinese, no one can buy them and hold the price above $2k, in fact, not even $1k.
2k bitcoins is nothing when you compare it to the daily trading volume. It can easily be absorbed by western investors. Chinese people aren't the only ones in the cryptocurrency investing scene.
But yeah, i think right now could be a bear trap. I feel like price belongs to less than $3000, especially after so much tension in the regulatory side of this.
The price may go up to $4k+ again, though i think it'll eventually adjust down to its rightful value at around $2500-3500. I wouldn't call this a flash crash though, it'll be done in stages.