Bitcoin (BTC) fell under $17,000 on Dec. 16 as merchants warned of overreaction to “FUD” involving alternate Binance and others.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Binance “FUD” fuels bearish BTC strikes
Data from Cointelegraph Markets Pro and TradingView adopted BTC/USD because it put in multi-day lows of $16,928 on Bitstamp.
The pair retraced its whole run to one-month highs courtesy of the most recent macroeconomic information and coverage replace from the United States.
Amid ongoing issues over the solvency of largest world alternate Binance, market sentiment confirmed what merchants argued was a transparent case of chilly ft.
The proof, they instructed, merely didn’t stack up in bears’ favor.
“The craziest rumours and FUD going round on actually all people within the crypto alternate enterprise,” Michaël van de Poppe, founder and CEO of buying and selling agency Eight, tweeted on the day.
An additional submit expanded on who these gamers are:
“Apparently the consensus is that Tether, Binance, DCG are all going to fall. Potentially even Michael Saylor. Clear, received it.”
Fellow dealer and analyst Crypto Ed sounded equally skeptical, drawing consideration to Bitcoin’s copycat comedown according to U.S. equities the day prior.
“Interesting to see everybody out of the blue so bearish on BTC as if it is solely appearing so weak. SPX is doing precisely the identical, possibly even weaker,” he advised followers, querying whether or not the “Binance fud” actually had a job to play.
BTC/USD vs. S&P 500 % change chart. Source: TradingView
Research: Binance reserves information “is sensible”
In examination of Binance’s earlier proof of reserves assertion, in the meantime, on-chain analytics platform CryptoQuant likewise discovered little proof of foul play.
Related: Why is the crypto market down right this moment?
“To consider the knowledge contained in Binance’s Proof-of-Reserves report, we in contrast the liabilities introduced by Binance within the report back to the on-chain metric information we’ve at CryptoQuant concerning Binance’s BTC Reserves (our estimation of the deposits made by Binance’s clients),” it defined in a weblog submit on Dec. 15:
“We found that the liabilities acknowledged by Binance are extremely just like our evaluation (99%).”
It added that the info Binance equipped about its liabilities “is sensible.”
No quantity of reassurance was sufficient to console BTC value motion on the day, nonetheless, with $17,000 barely holding on the time of writing.
Popular dealer Crypto Tony thus introduced entry of “the subsequent wave down for the bears,” amid ongoing predictions of a cycle low at $12,000 or below.
“BTC all as anticipated … if we consolidate for some time above 16900 I’ll open an extended …. nonetheless affected person for now,” fellow dealer Elizy wrote in a recent replace.
This article doesn’t include funding recommendation or suggestions. Every funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a call.