If you are following our latest cryptocurrency news, you probably know that Bitcoin is in a vulnerable situation – again. While many of you are asking what drives BTC below the $10,000 point numerous times this summer, an analyst decided to list all of the factors influencing the price of Bitcoin.
At the time of writing, Bitcoin is recouping some losses as it heads to five digits again. BTC is now at $9,980 but is still down by 6% in the past 24 hours. The fact that the market lost $40 billion this week due to corrections like these is also a frightening one.
So, if you are wondering what drives BTC and its constant losses, analysts agree that despite the losses the medium-term prospects of Bitcoin are looking surprisingly bullish. This is what one Goldman Sachs analyst recently noted when commenting the latest Bitcoin and altcoin news.
Even more recently, analysts have been calling for BTC to bounce at $10,000. Users wondering what drives BTC below this margin got an answer from one trader – who explained that $9,900 is where the 0.786 Fibonacci retracement and 1..6 times the 350-moving average sits – implying that it is a strong bounce zone for Bitcoin.
In a recent impassioned Twitter thread, an analyst named Dovey Wan with roots in China, said that the sell-off is a result of a monumentally large Ponzi scheme – which is what drives BTC to go lower and lower. The Primitive Crypto founding partner revealed that PlusToken, a Chinese seeming pyramid scheme, managed to take away with more than 200,000 BTC and more than 800,000 in Ether (ETH).
as per sir @loomdart ‘s request, this thread is abt the on-going sells off made by PLUS Token, the biggest Chinese PONZI which scammed ~70K $BTC + ~ 800K $ETH
I mentioned it briefly in my last Coindesk oped but worth additional attention as it may cause further sells pic.twitter.com/uIjgrzwHET— Dovey Wan 🗝 🦖 (@DoveyWan) August 14, 2019
The scam apparently saw the individuals (as shared in his tweet above) creating fake wallets with “high yield investment return” which resulted in 10 million investors sending capital to the platform.
As featured on many best cryptocurrency news sites, what’s strange is that not all of these involved in this scheme have been caught and jailed. Wan said that there remain “some people who hold the keys.”
In short, this Chinese cryptocurrency insider thinks that the recent sell-offs are caused by PlusToken which is what drives BTC to a four digit bottom. This may also explain why the cryptocurrency has yet to bounce.
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“On-chain momentum is crossing into bullish [territory]… The bottom is most likely in, any [move] lower will be just a wick in the macro view,” Woo said.There is also Glassnode, which is a crypto centric on-chain intelligence firm which recently noted that their metrics suggest that Bitcoin is bottoming and is slated to revert higher in a "strong" fashion. It is the Market Value to Realized Value (MVRV) which is implying the above mentioned, as well as showing that the crypto asset investors are believing in the topic. A reading of this would mark a bottom for the cryptocurrency market soon, too. At press time, Bitcoin is trading at $7,563 while the total market cap is $204 billion and the trading volume sits at $49 billion.
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“Bitcoin is winning the adoption race among crypto assets and is becoming increasingly scarce, which favors price appreciation. Plenty can go wrong with a nascent asset, but unless the basic premises reverse, there’s a higher probability to sustain price appreciation vs. Depreciation.He also tried to support the main idea that the halving event will act as a negative supply shock for the marketplace on the simple supply and demand economics.
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