To resolve your confusion over China's ban, the answer is simply "NO". China didn't ban Bitcoins but their government has "paused" (temporarily banned) ICOs. There were rumors that China may shut down local Bitcoin exchanges but the fact is, they won't. After the rumors that came in the markets, there's a warm environment between both the sides and panic sellers are getting out by selling off their BTC IMO.
The charts are currently showing two different patterns:
One shows that if the price breaks down the support near 3600, it may be a horrific scenario for Bitcoins as the price may move more towards downside.
The other shows that if it successfully consolidates itself above 5000 again and creates a harmonic pattern, we might see a bigger rally, even bigger than what we have witnessed till now.
With the current FUD streak of Bitcoin, I think Bitcoin price will continue to fall down. We see, FUD starts when China banned ICO, then followed by rumors of China closing all local cryptocurrency exchanges, then the announcement of a known personality about Bitcoin being fraud, plus the specialist saying Bitcoin exchanges are enabling crime to other countries. These are series of bad news for Bitcoin but as you stated, I agree that after all things clear up, we can see Bitcoin smoothly sailing again to rebound its price and eventually set another ATH.
