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Bitcoin [BTC] Price Analysis: A Chinese Scam Busted, Flood Bitcoin Forcing a Correction to $9,500

Latest Bitcoin (BTC) News

Well, the BTC chart is a mess. With double-digit losses over the last few days, skeptics are back. And this is a common fixture whenever BTC prices are shaky. A frequent occurrence, BTC may has slipped, losing 15 percent in this week, at least as I write this, but there is nothing much to worry about.

News has it that BTC slumped because of a large scale dump from a Chinese Ponzi scheme, selling BTC in their millions via Bittrex and Huobi. The excess supply is as anticipated pushing prices lower. Coincidently, the “dump” flashes with president’s Trump putting off his punitive tariffs on China, diffusing trade tensions as a result. It could be a hint of a better days ahead because BTC had effectively evolved into a safe haven. A refuge for investors wary of the next chess move from Trump.

All in all, reports from China-based analyst Dovey Wan has it that a Chinese scam, PlusToken, that managed to siphon 200k BTC and well over 800k ETH are unloading their stash in several exchanges in batches. By early 2019, the scheme had over 10 million members and promising increasing returns upon rising up the ladder in their four tier structure, many investors were dubbed into sinking their valuable digital assets. The ring leaders were apprehended by police last month but the $3 billion worth of BTC is yet to be recovered as they are held in a multisig wallet.

BTC/USD Price Analysis

Aforementioned, BTC is down 15 percent in the last week but pretty stable in the last day. However, a significant observation is that BTC is technically bullish against the green back. For obvious reasons, prices are mainly consolidating in the weekly chart.

In the daily chart, BTC found support from $9,500. Behind yesterday’s upswing was a remarkable uptick in trading volumes. Although not perfect, there is a double bar bullish reversal pattern with decent volumes. Even so, the best course of action for BTC bulls is to wait for a sharp close above $11,200.

Emphasized in previous BTC/USD trade plans, provided that the breakout bar has above average trade volumes exceeding 43k of July 16, then BTC would easily float to $14,000 or better in days ahead. As long as the consolidation continues, BTC bulls would continue accumulating around the $9,500 mark with a stop loss order at the $9,000 round number.

Chart courtesy of Trading View—Coinbase

Disclaimer: Views and opinions expressed are those of the author and is not investment advice. Trading of any form involves risk. Do your research.

Dalmas Ngetich
Dalmas is a very active cryptocurrency content creator and a highly regarded technical analyst. He has worked in various media as an analyst. He is passionate about blockchain technology, the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through writing about his knowledge and analysis of coin price charts.
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