Bloomberg Opinion’s Europe columnist isn’t buying the Bitcoin price pump, and he thinks you shouldn’t either — but what’s he really on about?
The price of Bitcoin (BTC) surged to slightly above $5,000 yesterday morning, which was cause for celebration for many Bitcoin bulls looking for signs of a market bottom. Some in the mainstream media, however, are still in the business of throwing shade and spreading some FUD (fear, uncertainty, and doubt).
In a column titled “Bitcoin Is Surging Again. Just Ignore It.” Leonid Bershidsky prefaces his opinion piece by stating,
Whatever the explanation, there’s no good reason to turn bullish on crypto.
But is he really struggling to find a good reason? If so, we can help him.
NO GOOD NEWS (EXCEPT THE GOOD NEWS)
Bershidsky boldly claims that there has been no good news about cryptocurrencies, stating:
There has been no good news about cryptocurrencies lately — they aren’t acquiring greater acceptance as investments or payments, and the crypto experiments of central banks, governments and major companies haven’t moved beyond dabbling. There’s been bad news, though — more big hacks, more dying currencies, more pump-and-dump schemes (sometimes, the extinctions and the schemes go together).
Maybe Bershidsky doesn’t read Bitcoinist or is intentionally oblivious.
Yesterday, Bitcoin’s Lightning Network, a second-layer scaling solution, reached a significant milestone of $5 million in capacity. Authorities at the Kiev City State Administration (KCSA) are reportedly re-examining the merits of adopting Bitcoin (BTC) payments in the city’s public transport system.
Bitcoin’s on-chain transactions have steadily climbed and recently reached all-time highs. The town of Innisfil, Ontario will soon be the first municipality in Canada to accept bitcoin in payment for property taxes. And this is all in the past two weeks, alone.
Only someone intentionally disregarding fundamental developments in the Bitcoin landscape would state what Bershidsky states in his FUD-piece.
Disregarding fundamentals, there are plenty of technical indicators per classical technical analysis theory to suggest a large green candle was inbound — but Bershidsky apparently disregards these, too, writing:
Given the small real trading volumes, any number of events could have caused Tuesday’s spike: A “mystery buyer” who placed a $100 million Bitcoin purchase order on multiple exchanges, or even trading bots going crazy over an April Fools’ Day story saying the SEC has approved two crypto exchange-traded funds. It could be neither: Perhaps enough retail investors saw all the optimistic tweets and drove the market up, which sparked a frenzy based on the fear of missing out, as sometimes happens in small, wild markets.
Bershidsky should have listened to Bitcoinist’s market analyst FilbFilb, who clearly predicted this price increase was a strong possibility. The market-leading cryptocurrency was knocking on the door of its upward resistance — the top of a rising wedge formation. Breaking out of said wedge all but guaranteed an explosive move to the upside.
Overall, Bershidsky’s response to Bitcoin’s move should be disregarded, since taking advice on the cryptocurrency market from mainstream media FUDsters is rarely sound advice — especially when Bloomberg’s writers are rewarded for moving the market.
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