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Recently, China initiated a cryptocurrency exchange crackdown in Shenzhen.

Crypto media outlet, The Block, reported that Binance offices in China were raided as well. However, Binance officials denied the existence of an office in China altogether. It looks like; this is the beginning of the search for truth.

As reported earlier on CoinGape, the news might have possibly acted as a bearish catalyst to Bitcoin’s price.

The CEO of Binance, Changpeng Zhao, has called out the media, let as one that spreads fake news. He added,

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If that’s how they want their brand to be known, it makes sense. No apologie so far about the fake news either. Irresponsible journalism.

Frank Chapprano from the media outlet replied to CZ’s demand for an apology with an open letter of challenge. He tweets,

Shortly, I am releasing a 1,400-word piece setting the record straight on Binance’s former office presences in Shanghai, which despite CZ’s denials, shut down recently. It will provide in-depth, unreported, specifics about the culture, locations, and projects being worked on.

The Inconsistencies in Arguments

Binance rests its case based on the “fake headline news of the non-existent “police raid.” One the other hand, the media outlet is looking to find inconsistencies in CZ’s claims of ‘no office’ in China.

Binance was earlier founded in China. However, after the banning of cryptocurrency exchanges in China, it moved its’ headquarters to Malta. Currently, it operates out of offices in Taiwan, Singapore, and Japan, as well. Hence, Binance’s former office presence is a strong possibility.

Now, whether or not Binance had any hands in the last few days of its’ operation is the question.

However, various sources from China have also condemned the news as fake. A crackdown of illegal exchange is on the raise in China. Tai Zen, aka Box Mining, informs social media on the issue. He tweeted,

Raided Chinese Exchanges are based in Shenzhen who explicitly dealt with CHINESE customers & involved ponzies. Binance and Bithumb were NOT raided

As reported on CoinGape, a leading crypto-analyst, Dovey Wan also confirmed from the crypto groups on Chinese Social Media that the news is fake.

Currently, as it stands, Zhao is furious with the outlet and demands an apology for the article, “which damaged our reputation and $btc price.”

Is the Chinese Threat Real?

Nonetheless, the market players are smarter than the superficial view. The liquidation reports on BitMEX and other exchanges indicate a severe loss for bulls.

However, China does seem to have increased its vigilance on cryptocurrency exchanges. Wan reports from the new PBOC update,

Shanghai law enforcement agency will conduct “Special rectification of cryptocurrency-related trading platform, which can be registered overseas, shall be immediately rectified and retired”

Furthermore, she also notes that the Chinese crypto community has been anticipating such regulations since the beginning of the week. While it creates a scare in the market, the crackdown would eventually purge the industry of bad players.  As the big exchanges primarily remain unaffected.

The selling pressure could be arising from China. However, the derivatives market provides for an endless case for such surprises. Eventually, this could lead to drying up of the liquidity from the market. However, long-term trends should remain unaffected. According to Willy Woo, long term trends are based on on-chain investor activity and adoption only.

Do you think a police raid article caused the drop? Please share your views with us. 

Summary

Bitcoin [BTC] Price Probe: Analyst Explains the Drop, as Exchange CEO Blames Media

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Bitcoin [BTC] Price Probe: Analyst Explains the Drop, as Exchange CEO Blames Media

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Recently, China initiated a cryptocurrency exchange crackdown in Shenzhen. 

Author

Nivesh Rustgi

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CoinGape

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Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



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Nivesh Rustgi , 2019-11-23 05:18:13 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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