The only problem here is that part of the run up was based on the sense that China was allowing Bitcoin to flourish. That's pretty powerful in the world's second largest economy with a suspect currency of it's own (highly manipulated for political purposes) If that market opportunity is now closing then that makes Bitcoin much less valuable (at least over the short term) Less demand = smaller price.
You make a good point. If China shuts off entirely then the potential size of Bitcoin's network could decrease significantly. That's not to say however that Bitcoin doesn't still have a significant and increasing network of users. There have been significant gains outside of China as well recently. A large contributor to the high was resultant from the US Senate Hearings which seemed to somewhat validate Bitcoin's legality in the U.S., the world's largest economy.