On August 2nd, 2019, Binance CEO Changpeng Zhao went ahead to tweet in jest about risk-averse investors who had sold bitcoin when it was trading below 10k telling such people to slap themselves so that they cannot repeat the same mistake next time. This comment stemmed from bitcoin price action as it broke the $10k resistance level to comfortably trade above $10,500.
Today, the bitcoin price surged reaching an intraday high at $12,300 as its dominance clocked 68.5%. Changpeng reminded his Twitter followers not to “bet against bitcoin”. He then referred to his August 10 tweet adding:
“This is not financial information, but you can slap yourself a little harder now.”
Yes, You Read It Right: 10 BTC To Changpeng If Bitcoin Doesn’t Drop Below $8K This Month
Following the tweet by CZ, as the Binance CEO is fondly known, an analyst, bitcoin Fund Manager and bitcoin whale, BitKrabs replied stating:
“Don’t bet against bitcoin? Okay, well, I disagree. If it doesn’t crash back below $8k this month, I’ll personally send you 10 BTC.”
First off, 10 BTC under the current market prices equates to a whopping $117,700. Insane amount of bitcoin to give away, right? Therefore, BitKrabs must have a well-thought-out price analysis to back this audacious bet. In an August 4th tweet, he explained that during this month, bitcoin will face strong resistance at the $11,000 and $12,000 areas. He offered a pictorial analysis observing:
“#Bitcoin August analysis: BTC will fail to break next resistance!
- What will happen instead is we will reject it, then nosedive to the $7.5-8k Range.
- We will likely retest 9K – around the middle of August
- Finally, dip to the yellow line (buy there)”
Notably, bitcoin already tested the $12K area today before experiencing a $700 flash crash to trade back below $12k.
Bitcoin Slides Below $12K
Today bitcoin breached resistance to trade as high as $12,300. Unfortunately, it then shed $700 in minutes to trade near $11,600. At press time, BTC is exchanging hands at $11,696 as per data from CoinGecko.
The ongoing US-China trade wars don’t seem to be easing any time soon. This is good for bitcoin as many investors turn to bitcoin as a safe haven during these growing tensions. Yesterday, during an interview with CNBC’s Squawk Box, Jeremy Allaire, Circle CEO noted that there was a correlation between bitcoin recent rally to $12k and the devaluation of the Chinese Yuan. He mentioned:
“You can very clearly see some macro correlation there. I think the broader theme of , you know, Bitcoin specifically, crypto more broadly participating in these global macro forces is becoming more and more clear. Rising nationalism, rising amounts of currency conflict, trade wars these all obviously are supportive of a non-sovereign, highly secure digital store of value.”
Nevertheless, the current macroeconomic conditions give bitcoin a leeway to rise exponentially in the near-term despite the recent slight pullback. We just have to wait and see how the crypto market plays out.