Bitcoin retraced from Thursday’s high at $7,609 to exchange hands at the $7,420 handle as China prepares to regularise the budding space.

The price is struggling to regain its May 23^rd price just above $8,000. The somewhat directionless or sideways trading that has gone on for the past couple of days will eventually break, but Asian trading hours only reinforced this trend. Bitcoin, the mothership which often dictates the moves of its ICO/crypto minions, hasn’t had much upside in the past 24-hours, reaching a high at $7,609.

Meanwhile, China seems to be warming up to Bitcoin again, or at least that’s the message of a Global Times editorial: “There’s an increasing belief that just saying no to Bitcoin won’t be the eventual solution to the cryptocurrency issue,” writes Xiao Xin, author of the editorial. “A more fundamental approach would be to embrace the new technology without putting the country’s financial system at stake.”

This approach might perhaps be interpreted as a signal that Beijing is preparing to tighten regulations around digital currency, as US, Japan and Korea have already done.

It has to be said that regulation, rather than an outright ban could be a bullish sign for the space, as China is the largest proponent of cryptocurrency mining in the world.

On the intraday level, BTC/USD is supported by $7,400, surrounded by several technically important levels. Namely, 50-SMA (hourly chart) comes at $7,464, it is followed by 200-SMA at $7.416 and 100-SMA at $7,373. The upside short-term trendline currently at $7,442 offers additional support, but this doesn’t signal anything resembling a strong bullish sign. On the other hand, Bitcoin is facing modest to marginal resistance at $7,600 and $7,683.