In the past week, Bitcoin has remained flat and has established a narrow range in the low $ 7,000 region as volume declines.
While this consolidation is arguably neither bullish nor bearish, more and more analysts suspect that the impending volatility struggle will take the form of a breakdown below $ 7,000, which is confirmed by the fact that BTC is the key resistance in the region from 7,800 to Has not exceeded $ 8,000.
Bitcoin bears continue to lower prices
On November 14, popular crypto trader “Salsa” noted that Bitcoin’s daily chart “doesn’t look pretty” and pointed out that BTC has turned $ 7,300 support into resistance – a support resistance flip that means that the bears are in control.
Salsa currently expects Bitcoin price to drop to $ 6,200 to $ 6,400 where it sees strong support. If it is lost, however, it expects a fall in the low $ 5,000 region.
Is there hope for the cops?
While the analysis speaks for the bears, all hope has not yet been lost for the bulls.
On-chain analytics expert Ergo released an extensive Twitter thread on Friday, revealing that PlusToken – an Asian-oriented Ponzi scam that collected over $ 2 billion in Bitcoin and Ethereum in one year – launched its Bitcoin Stock no longer liquidated after months of sale.
According to Ergo’s analysis, the outflows from PlusToken-related wallets to exchanges dropped significantly below 300 BTC per day, a decrease of over 70% compared to the ~ 1,100 coins that Ergo believes were sold every day in the previous months ,
Now that hundreds of fewer coins are sold on the free market – which is worth millions of dollars less in liquidity on the seller side – Bitcoin can begin to ease some of the downward pressure. A good sign.
According to various analyzes, PlusToken is said to have contributed significantly to Bitcoin’s drop from $ 14,000 to $ 7,000. Some even believe that fraudulent coin sales have broken through those bullish cryptocurrency market cycles that long-standing traders are used to.