Bitcoin Jumps 10%, Climbing Back Into October Chart — Price Analysis

  • Short term trend: Short uptrend if daily 21EMA cleared
  • Long term trend: The trend remains down until more prominent moves are made

Bitcoin (BTC) is showing some strength today, after punching back through the border of October’s market structure at around $7,300. The leading crypto has been flirting with this level for a couple of weeks, ever since “capitulating” through it on November 19. Today’s surge was exactly 10% from bottom to top, and now we wait to see how the daily will close and digest the move.

Starting on the 4-hour, we can see the very specific area between $7,300-450 that Bitcoin keeps spilling over and under. This area is where support came in during October to effect a Bitcoin reversal – short term reversal, it proved – from its downtrend.

Back and forth over October marketBTC chart by TradingView

For bulls, this is a promising movement, which – if it sticks – will constitute a higher low versus the November 25 low put it (more on that later). Some good volume came in to support this movement, and we see that the histogram has been pushed aggressively into positive territory after diverging bullish from price.

Moving to the daily, we are reminded to curb our expectations on this move and bear in mind the larger downtrend. Bitcoin is now getting caught within a larger resistance, from about $7,400-800 (red band), which itself sits just above where most Bitcoin trading occurred during 2018 (colored bands).

Definitely still in a downtrendBTC chart by TradingView

Here, we are always looking for the end of the downtrend that has been in play since the summer. We see a large divergence from price forming on the RSI, although this doesn’t quite hold on the 2- and 3-day charts (not shown). We would probably want to see a more recent divergence on the daily, on a lower price low, to have more confidence.

But if Bitcoin can claim and close above the 21 EMA today (orange line), this move may begin to look like a larger reversal. At present, it is too early to say.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

Featured Image Credit: Photo via Pixabay.com

Luxury Cars and $15 Million in Crypto Seized in Chinese Arbitrage Scam Bust

Michael LaVere
  • Chinese authorities seized $15M in crypto and several supercars following scam ring bust.
  • The group was allegedly operating an arbitrage scam that promised users fake Huobi Tokens. 

Chinese authorities have reportedly seized more than $15 million in crypto-assets and $2 million in supercars after busting up an arbitrage scam selling counterfeit tokens. 

According to a report by China’s Ministry of Public Security, police in the city of Wenzhou arrested 10 individuals connected to operating a fraudulent cryptocurrency scheme. The report claims the arbitrage group was scamming victims using blockchain smart contracts to generate fake cryptocurrencies. 

Following the bust, authorities seized bitcoin, ether, and tether worth over 100 million yuan ($15 million). The report also claims police seized several supercars, including a Ferrari and a McLaren valued at more than $2 million, in addition to the luxury villa in which the scammers were staying. 

The arrested individuals had reportedly operated a smart contract scheme since 2019, which advertised a blockchain product that claimed to generate Huobi’s native token HT. Unsuspecting consumers were promised the tokens would generate arbitrage opportunities worth a return of up to 8%. 

One victim, identified as Li in the report, first notified police after joining a Telegram group belonging to the scam artists. 

Li told authorities, 

Simply put, you send one unit of ETH to a designated address, you will receive 60 HT. And then you can sell it to gain the difference.

Featured Image Credit: Photo via Pixabay.com