Good post. They have funny ways of doing things in China, operate during years without a license (imagine that in the US!) until finally the goverment said that they cannot continue like that. Information from chiness people is that they will stop trading for a month and then they will resume once it has been "regulated".
On the other hand, according to my technical analysis we could see a rebound from this levels, may be up to 3600 and then it will go down again. That is the short term. On the medium term we could be completing Elliot Wave 4 which means that only Wave 5 left before a long term bear market starts.
Here is my technical analysis
https://steemit.com/bitcoin/@freedomvigilante/is-bitcoin-going-to-recover-from-this-crash-technical-analysis-with-ledger-levels-fibo-and-elliot-wave