After reaching $ 6,600 at the end of last month, Bitcoin (BTC) saw a strong upswing, rising to $ 7,800 this weekend. Even though BTC dropped to $ 7,300 at the time of writing, Bloomberg predicts a bullish future.
Despite the current correction, Bloomberg reports that “Bitcoin bulls have at least one technical indicator for which they can be grateful.” The indicator in question is the GTI Vera Convergence Divergence Divergence Indicator, which measures upward and downward movements and shows that BTC has entered a “new buying trend”, possibly indicating that BTC is ready to push the upper end of its trading range above $ 8,000 to reach again.
The fundamentals seem to support this. Fundstrat’s Tom Lee said in a recent report to CNBC that the rise in the price of American stocks, which are now at all-time highs, is creating the conditions for risk-tolerant investors. Bitcoin and other markets that are classically classified as “risky” could therefore be provided with new capital.
Bitcoin more bearish than bullish?
Despite Bloomberg’s expectation that Bitcoin will climb above $ 8,000 again, which could lead to a bullish trend, some analysts have said that BTC continues to see a bearish trend regardless of what the GTI Vera indicator says. Popular trader NebraskanGooner recently noted that Bitcoin’s weekly chart looks bearish, despite a recovery after the strong downward move. The analyst explicitly noted that BTC failed to break the 99-week simple moving average and a horizontal resistance zone. He also added that the narrative of an “increased buyer volume” was a clear mistake and that the on-balance volume indicator went through a retreating retest.
Bitcoin investors from the PlusToken Scam in South Korea could cause further abdominal pain. According to a cryptoanalyst, another 58,000 Bitcoin from the PlusToken fraud could be sold on the free market in the next few months. PlusToken was founded in South Korea in 2018 and was a purported Ponzi scheme that promised high returns to its investors, consisting of “stock market gains, mining earnings and referral benefits” and reportedly attracted three million registered users.
The platform went bust during the summer, and Ciphertrace reported that investors lost an estimated $ 2.9 billion when PlusToken’s app and exchange went offline. A cryptanalyst, known in the industry as Ergo, rated the overall size of the fraud and said that approximately 129,000 BTC had already been “mixed” to make illegal earnings in BTC more difficult to track