Are some predictions simply too preliminary? Or is the current Bitcoin’s pump just temporary?
Indeed, last week was not a good one for Bitcoin. Thus, Tomorrowland Ltd, a “crypto OTC Desk based in the UK providing liquidity solutions tailored to our clients’ needs” analyzed the development. In a doom and gloom manner, the firm stated that the outlook looks bearish.
“Bitcoin is facing strongest selling pressure since February and has the potential to drop below recent lows near $7,750,” the post read.
It then proceeded to note that “the top cryptocurrency by market value fell from $8,326 to $8,086 in the 60 minutes to 17:00 UTC on Tuesday, confirming a downside break of the recent trading range of $8,450–$8,250, as expected.”
To strengthen its bearish argument, it referred to the Chaikin Money Flow (CMF), providing charts that showed Bitcoin’s plunge. Therefore, it stated there is “a bullish-to-bearish trend change and is now seen at -0.14.”
To further enhance its point, Tomorrowland Ltd, quoted Naeem Aslam, chief market analyst at ThinkMarkets FX and contributor for Forbes. He said that “the 50-day MA holding below the 100-day MA is a bearish sign.”
The firm also mentioned other macro-political and economic factors like the escalation of trade war between the U.S. and China. And the shrinking of the world economy (according to projections by the International Monetary Fund).
So was all of this wrong?
To begin with, it is difficult to pinpoint the exact factor that led to BTC’s abrupt crash. This might have something to do with the fact that the US is willing to regulate stablecoins as securities. However, this is everything but a guarantee.
What is more important, however, is to contemplate the following question: for how long Bitcoin has re-bounced? So far its performance has indeed dismissed the theory advocated by Tomorrowland Ltd. Currently, BTC is trading at $9,388.26 at press time.
However, if such factors as the shrinking economy and deterioration of relations between China and the U.S. are indeed influencing BTC’s price, then this revival is, arguably, temporary. Besides, it is noteworthy that the whales are being highly active at the moment. Today alone, several big transactions took place. Just like the one below worth $7,384,258.
779 #BTC (7,384,258 USD) transferred from #Coinbase to unknown wallet
— Whale Alert (@whale_alert) October 28, 2019
Hence it is possible to suggest that the whales are behind the recent price pump. Should it be so, then the predicted by Tomorrowland Ltd bears might turn out to be just right. After all, their arguments had substantiation to them.
Yet, in the world of cryptocurrencies, nothing is ever certain. And doing your own research is a must.