Top Crypto Investment News, Listings, Member Posts, Crypto Investment Daily Indices and more!

4yrs ago Crypto newsbtc Views: 239

Bitcoin didn’t start the week off hot. On Monday and Tuesday, the leading cryptocurrency tanked, falling by 10 percent in 48 hours’ time. Altcoins followed suit, with Ethereum’s price performance actually going into the red on the year, accentuating the severity of this strong sell-off.

Though, it seems that bulls aren’t going gentle into this good night. Wednesday, Bitcoin suddenly shot higher, rocketing 11 percent higher over a relatively short 12-hour period, reclaiming key support levels in the mid-$6,000s, then low-$7,000s.

Related Reading: Breaking: As Bitcoin Reclaims $7,000, Bakkt Volume Explodes to New High

Clearly, this reversal rally has legs. Though, the optimism that this upward move brought was quenched when Twitter bot “Whale Alert” revealed on Wednesday evening that PlusToken, one of the largest cryptocurrency scams ever, transferred a large amount of Ethereum to an “unknown wallet.”

Due to the narrative that PlusToken’s liquidations are the key driver behind Bitcoin’s decline, this transaction led to fear that another dump, one that may bring BTC to new lows, is on the horizon. But is this really the case?

broke: plustoken will mix ETH, send to exchange, dump

woke: plustoken will open ETH short positions, move stack around, watch panic unfold, profit, repeat

— Matteo Leibowitz (@teo_leibowitz) December 19, 2019

$100 Million Ethereum Transaction Scares Investors

One of the many beauties of public cryptocurrencies is that the blockchain backing them are simultaneously pseudonymous and transparent, meaning that you can look into, say, the number of Bitcoin in existence but not know who (or what) owns coins. The pseudo-transparency exhibited by cryptocurrencies (especially Bitcoin) has created an industry and art around “chain analysis,” which gives researchers a way to delve into the cryptocurrency economy in ways others can’t.

This has proven to be very useful.

Case in point, Wednesday night saw Whale Alert report that 789,525 ETH, valued at $105 million as of the time of the transfer, was transferred from an address operated by the operators of the PlusToken Wallet scam to an “unknown wallet.”

Due to the timing of this transfer — it came after Bitcoin rallied by 11% in half a day — many feared that PlusToken was looking to capitalize on the opportunity and dump millions worth of cryptocurrency on the open market.

- - - - - - - - - - 789,525 #ETH (105,099,509 USD) transferred from PlusToken to unknown wallet

Tx: https://t.co/9kTSZy7Y1G

— Whale Alert (@whale_alert) December 19, 2019

The Ether held in the PlusToken-affiliated address hasn’t moved since it was deposited there some seven hours ago (as of the time of writing this). Also, the wallet the coins were sent to is seemingly new, not an exchange wallet.

These two factors about the transaction suggest that PlusToken currently doesn’t intend to dump the coins, meaning that a secondary reversal to a downtrend has a lower likelihood of taking place.

Related Reading: Bitcoin Indicator “Screams” Price Capitulation is On Horizon; Here’s Why

Further Bitcoin Reversal Rally Likely, Indicators Show

It appears that the reversal trend that Bitcoin exhibited on Wednesday may persist until the end of the week, maybe even later.

Per previous reports from this outlet, due to Bitcoin’s strong performance on Wednesday, the chart of the cryptocurrency posted a bullish engulfing candle, indicative of a trend reversal. This candle also validates the existence of two bullish divergences between the price and the one-day Relative Strength Index and Moving Average Convergence Divergence (MACD).

That’s not all. Tuur Demeester, a prominent cryptocurrency fund manager and commentator, noted that Bitcoin’s latest bounce has seen BTC hold a key logarithmic uptrend line, something essential for the bullish argument.

We've now twice tested the support level—what a thriller. pic.twitter.com/KJCerXNHaf

— Tuur Demeester (@TuurDemeester) December 18, 2019

 

Featured Image from Shutterstock

Bitcoin Jumps 10%, PlusToken Moves $100m of Ethereum; Can it End the Rally? on NewsBTC.


Today's Crypto Investment Headlines:

Log In for More
Access Over 250K+ Industry Headlines, Posts and Updates
Not a member yet?

Join AlphaMaven

The Premier Alternative Investment
Research and Due Diligence Platform for Investors

Free Membership for Qualified Investors and Industry Participants
  • Easily Customize Content to Match Your Investment Preferences
  • Breaking News 24/7/365
  • Daily Newsletter & Indices
  • Alternative Investment Listings & LeaderBoards
  • Industry Research, Due Diligence, Videos, Webinars, Events, Press Releases, Market Commentary, Newsletters, Fact Sheets, Presentations, Investment Mandates, Video PitchBooks & More!
  • Company Directory
  • Contact Directory
  • Member Posts & Publications
  • Alpha University Video Series to Expand Investor Knowledge
  • AUM Accelerator Program (designed for investment managers)
  • Over 450K+ Industry Headlines, Posts and Updates
ALL ALPHAMAVEN CONTENT IS FOR INFORMATIONAL PURPOSES ONLY. CONTENT POSTED BY MEMBERS DOES NOT NECESSARILY REFLECT THE OPINION OR BELIEFS OF ALPHAMAVEN AND HAS NOT ALWAYS BEEN INDEPENDENTLY VERIFIED BY ALPHAMAVEN. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THIS IS NOT A SOLICITATION FOR INVESTMENT. THE MATERIAL PROVIDED HEREIN IS FOR INFORMATIONAL PURPOSES ONLY. IT DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY INTERESTS OF ANY FUND OR ANY OTHER SECURITIES. ANY SUCH OFFERINGS CAN BE MADE ONLY IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET FORTH IN THE INVESTMENT'S PRIVATE PLACEMENT MEMORANDUM. PRIOR TO INVESTING, INVESTORS ARE STRONGLY URGED TO REVIEW CAREFULLY THE PRIVATE PLACEMENT MEMORANDUM (INCLUDING THE RISK FACTORS DESCRIBED THEREIN), THE LIMITED PARTNERSHIP AGREEMENT AND THE SUBSCRIPTION DOCUMENTS, TO ASK SUCH QUESTIONS OF THE INVESTMENT MANAGER AS THEY DEEM APPROPRIATE, AND TO DISCUSS ANY PROSPECTIVE INVESTMENT IN THE FUND WITH THEIR LEGAL AND TAX ADVISERS IN ORDER TO MAKE AN INDEPENDENT DETERMINATION OF THE SUITABILITY AND CONSEQUENCES OF AN INVESTMENT.