The world’s biggest cryptocurrency by market capitalization has just had another trying week as it plunged just before the weekend to lose close to $1,000 of its USD value. Luckily, the positive momentum wasn’t broken and Bitcoin quickly recovered back to its last week’s highs. However, judging from the current market indicators, this recovery may be short-lived.
According to the Independent, the weekend price crash could very well be attributed to a single trade. As the media portal explains, an anonymous trader on the Bitstamp exchange executed a big trade last Friday, selling 5,000 Bitcoins in one instant swoop. Valued at approximately $40 million, this trade is the most probable reason that triggered Bitcoin’s plunge right before the weekend.
Wiping around $10 billion of the coin’s market cap in only 20 minutes, the mammoth trade just shows how big “whales” could quickly ruin the plans of long and short positions, according to the newspaper. Bitfinex immediately responded with a tweet that they are investigating the matter but little details were given on their findings. Still, most experts agree that despite such events, Bitcoin has already proven that it is a good investment over the long term.
Bears Return for Profit
In the past week since our previous update, Bitcoin dropped down to a low point of $7,099.85 on Friday evening, before rising again to a weekly high of $8,251.76 in the early hours of Monday. Like the previous week, Bitcoin’s trading volume remained consistently high during this period, climbing over $30 billion at the time of the price drop. As of now, the volume is at $24.7 billion, signaling there is enough activity that could drive a new price change, while the market capitalization is at $140.4 billion.
As our technical analysis indicates, the market is quite bearish at the moment, with 9 out of 12 technical indicators and 7 out of 12 moving averages being in the red zone, sending “sell” signals. The gap between the SMA 100 and the SMA 200 is also narrowing, telling us that the bearish pressure is increasing. With Bitcoin showing us a broad trading range, this bearish momentum could very well be just a short-term change triggered by profit takers. However, if the selling pressure continues, we could be looking at a drop towards the next resistance level near $7,600. So, keep your eyes on the market over the next two days, especially during the weekend.
Craig Wright Tries to Copyright Bitcoin’s Whitepaper
Craig Wright, the Australian computer scientist and entrepreneur who has claimed to be Bitcoin’s inventor Satoshi Nakamoto, has now filed a copyright registration over Satoshi’s whitepaper and parts of the original Bitcoin code. According to available information about the registration, he is trying to win the rights both to the whitepaper and the 2009 code that launched Bitcoin.
Representatives of Wright have already made claims that the US. Copyright Office has given “confirmation” that the computer scientist is Satoshi Nakamoto. Jimmy Nguyen, the President of the Bitcoin Association which Wright reportedly plans to assign the copyright to, has commented on the registration by saying that he was “thrilled” that Craig Wright was recognized as the author of the early code and Bitcoin’s white paper, the Forbes reports.
However, as most legal experts agree, a registration doesn’t prove ownership nor does it award a patent. Anyone can register something so they can prepare for any subsequent lawsuits that challenge their ownership. Therefore, only time can tell how the whole thing will play out and whether Wright will finally be accepted as the sole creator of Bitcoin.