Bitcoin Bulls Face an Uphill Task as Bitcoin Consolidates Above $40k– January 10, 2022
On January 7 price slump, BTC/USD dropped to $40,586 as Bitcoin consolidates above $40k. The current selling pressure has subsided because Bitcoin has reached an oversold region of the market. It is consolidating above the previous low of the December 4 price slump. The market will resume upward if the current support holds.
Resistance Levels: $70,000, $75,000, $80,000
Support Levels: $50,000, $45,000, $40,000
Bitcoin range bound action between $45,600 and $48,000 has been overcome by the bears. The bears pushed BTC’s price to the low of $40,586 by breaching more demand zones. This implies that there was more supply than demand. As Bitcoin fall to the $40,000 psychological price level, the market has reached the oversold region. Buyers are likely to emerge to push BTC prices to the previous highs. However, if the selling pressure continues, Bitcoin will reach the previous low of $39.678 and rebound. This will propel BTC’s price to rise to the high of $45,500. In the meantime, Bitcoin is still consolidating above the $40,586 support.
Binance Exchange in a Multi-million Dollar Crypto Scam
There are complaints against an ongoing scam involving investors who are sending funds from Binance wallets to unknown third-party wallets. Pakistan‘s Federal Investigation Agency (FIA) has started a criminal investigation after receiving numerous complaints against ongoing scams in Binance. According to reports, the FIA’s Cyber Crime Wing has issued an order of attendance to Binance Pakistan’s general manager, Hamza Khan to provide the exchange’s link to “fraudulent online investment mobile applications.” In addition, “A relevant questionnaire has also been sent to Binance Headquarters Cayman Islands and Binance US to explain the same.”
The investment frauds in Pakistan were carried out by asking users to register on Binance and transfer funds to third-party wallets under the pretext of unrealistic returns. According to the FIA notice, “These schemes benefit old clients at the cost of new clients and ultimately disappear when they have made substantial capital base worth billions of rupees.” The FIA investigation showed that the Pakistani agency has identified at least 11 fraudulent mobile apps that suddenly stopped working after stealing user’s funds. These apps are MCX, HFC, HTFOX, FXCOPY, OKIMINI, BB001, AVG86C, BX66, UG, TASKTOK, and 91fp.
Nevertheless, BTC’s price is fluctuating above the $40,586 as Bitcoin consolidates above $40k. Nonetheless, on December 17 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that BTC price will fall but will reverse at level 1.272 Fibonacci extension or $39,728.20.
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