Bitcoin price is bravely fighting to stay above USD 8,000, clinging on to that number for most of the day and in fact, spending most of the past 24 hours above USD 8,100, successfully preventing a second consecutive day of leaving that critical support zone.
As BitcoinNews.com technical analysis points out again, the lack of buyer resistance at these levels have been surprising, but they have been much less reluctant to let go of the USD 8,000 support and this is now resisting selling pressure very well.
It is still unclear as to why this recent fall has happened, although the Chinese blockchain enthusiasm that was credited for last month’s boom has probably faded, and allowed the prevailing bearish sentiment to take a firmer hold of the market.
Some technical analysts note that two significant Bitcoin price moving averages at 100 and 200 days have crossed over yesterday, bringing about the so-called death cross and indicating that a medium trend is now in play in favor of Bitcoin bears.
How this will translate to Bitcoin price in November remains to be seen, but statistician Willy Woo has predicted that many Bitcoin miners are already quitting the game, since they believe that this year, the drop from the highs just months ago could worsen during this bear cycle to as low as USD 4,500. He believes this could happen just before next May, when the block halving event would happen for Bitcoin. This would mean a drop of just over 70%.
Woo, however, said to another influencer Tone Vays, that the market was still long overall, and tha he was waiting for a short phase that would trigger a change of direction. But he notes that with only six months left before the halving, time was running out to secure further drops. Meanwhile most miners who don’t have deeper reserves have already switched off their rigs.
Other traders are thick in agreement, with filbfilb saying this was not a time to be taking risks:
“I’m totally back in cash now. There doesn’t seem to be obvious sign of reversal. Going to sit on the sidelines until there is more indication.”
Meanwhile, the US government has not turned its eyes away from Bitcoin, with the New York Southern District Court today ruling against a civil case of Jon Barry Thompson, who is alleged to be the perpetrator of a fraud involving USD 7 million in Bitcoin.
Judge Loretta A Preska’s ruled that the state, represented by the Commodity Futures Trading Commission (CFTC), was within rights to interven in civil proceedings as it was related to a Bitcoin scam running up millions.
The charges against Thompson is that he was guilty of “knowingly or recklessly making false representations to customers in connection with the purported purchase of Bitcoins worth over $7 million”. Preska declared a statement:
“Upon the consent of all relevant parties, the Government’s application to intervene in the above entitled matter and to stay the matter in its entirety until the conclusion of the parallel criminal case, United States v. Jon Barry Thompson […] is granted.”
CFTC initiated the case about 7 weeks ago. Thompson apparently headed a Bitcoin escrow service and had sent virtually all of funds sent to him onward to third parties, instead of taking custody of them. The US regulator is seeking restitution, disgorgement, civil monetary penalties, permanent trading and registration bans, as well as a permanent injunction against Thompson.
Crypto scams is the other headline of the day, with data analysis firm Elliptic claiming to have traced some USD 400 million in Ripple tokens (XRP) to illegal transactions. It does note, of course, that “the vast majority of activity is legitimate“, with this amount representing not even 0.2% of XRP volume.
Apparently, the analysis began in 2018, with the identification of several hundred XRP accounts known to be linked to illegal activity including credit card theft and sales. Chief scientist at Elliptic Tom Robinson outlined:
“As criminal use of crypto-assets such as XRP evolves, we are committed to shining a light on this illicit activity, giving financial institutions the confidence they need to engage with the crypto ecosystem. XRP is gaining increasing traction in the APAC region among financial institutions and banks.”
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