The bears have bitten down hard on bitcoin this week, sending the price plummeting to retest the November low.
Traders are now explaining the downturn with various narratives. Some blame the PlusToken scammers for selling their $2 billion worth of stolen bitcoin and crashing the market, and others suggest we have now finally hit a technical low that will eventually push the price upwards.
Bitcoin tests critical low
Bitcoin’s wild ride has taken another exciting turn, with prices slumping to seven-month lows below $6,500 on Wednesday, before surging by over 10 percent to reach $7,400 shortly afterwards.
The reason for the ongoing sell-off, says blockchain forensic firm Chainalysis, could be the gradual selling of bitcoin by the OnePlus Token scammers. The blockchain detectives have tracked the stolen funds across various blockchain ledgers to find most of the 45,000 bitcoin were cashed out with OTC traders at the Chinese exchange Huobi.
But the bad news, says Chainalysis, is there is still 20,000 BTC waiting in various wallets to be sold.
Technical analysts, however, are more optimistic the price might have found a bottom.
Veteran chartist Peter Brandt tweeted on Thursday that bitcoin looks to have found support at the intersection of a short-term bear channel and a long-term bullish trendline.
If bitcoin can break out of this bearish channel through resistance at around $8,463, then the outlook will switch to bullish. If, on the other hand, the bottom of the long-term trendline breaks, we could see a significant drop.
Ethereum suffers side-effects from Istanbul fork
Ethereum’s Istanbul upgrade on December 8th seemed to go smoothly, but since then, a complication has emerged.
When preparing the upgrade, developers are said to have made a mistake in estimating when the feature known as ‘the difficulty bomb’ or ‘Ice Age’ would become a problem. This means more upgrades are on the way sooner than previously expected, starting with hard fork Muir Glacier which is scheduled for between late December 2019 and early January 2020.
The news seems to have irked British cryptocurrency exchange Coinfloor, which has decided to delist Ether. Founder and CEO of Coinfloor Obi Nwosu said the technical support required for the upgrades was not worth dealing with, and besides, Bitcoin remains the most “inflation-proof” cryptocurrency with the most potential to become the “best form of money.”
Adding to Ethereum’s woes, a recent tweet from Whale Alert noted that 789,525 ETH was being transferred from a wallet associated with the PlusToken scammers to an unknown wallet, suggesting they may soon be sold and drive the price down further.
On the charts, Ether has recovered to $127 after touching a low of $115. To the upside, the next significant resistance area lies at $140. And to the downside, if the low of $115 breaks, we could see Ethereum visit support at $100.
Mindol is big in Japan
As most of the market has plummeted, one Japanese token has been skyrocketing.
Mindol (MIN), the token of a project that aims to support content creation in Japan, has almost doubled in price since early December.
This sudden surge makes Mindol the 17th largest cryptocurrency by market cap and seems to be related to an announcement by the Bibox exchange that it will be listing the token, which would give Chinese investors an opportunity to buy it. As of yet, Mindol is not listed on any major Western exchanges
The information in this article is for informational and educational purposes only and should not be considered financial or investment advice. Investing in ICOs, IEO’s, cryptocurrencies, or tokens is highly speculative, and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.