Will BitFinex $1 Billion Trigger a Bitcoin (BTC) Sell-Off?

Dalmas Ngetich

Last Updated: June 11, 2024 9:14 pm

2 mins read

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Bitcoin (BTC) prices firm, add 9.5 percent in the last week
Despite fraud accusations, BitFinex will crowd-fund to raise $1 billion

BitFinex, sources have it, will proceed with their IEO and the aim is to raise $1 billion in USDT. While it is pleasing for investors, the exchange is reserving $600 million for whales. Even so, its success would mean pressure on Bitcoin (BTC) which is up 9.5 percent in the last week.

Bitcoin Price Analysis

Fundamentals

Bitcoin (BTC) price performance is impressive. Rallying, against all the odds, the coin is up 9.5 percent from last week’s close adding 2.4 percent in 24 hours. Even so, analysts believe that prices are topping. Indeed, the zone between $5,800 and $6,000 house significant resistance levels that buyers must overcome for a trend continuation.

If anything, that’s our iteration, and despite many traders loading up thanks to improving fundamental factors and general improvement in sentiment, it is only until after our trade conditions are correct that we shall recommend buying on dips with first targets at $6,000 and later $8,500.

Just an opinion — there is a chance $BTC is topping here, having met its price target at key resistance. A correction could occur before another move toward 6500, then a more significant correction. pic.twitter.com/woetnihqB5

— Peter Brandt (@PeterLBrandt) May 4, 2019

Presently, the focus is on BitFinex and their brave plans of raising $1 billion through an initial coin offering (IEO). The composition of a team determines how successful it is and as we now know, Tether Limited reserves can’t cover the amount of USDT in circulation. Besides, BitFinex has in more than one occasion accused of malpractices and is a victim of a hack.

Even so, assuming it is a success, we expect investors to liquidate their BTC holdings for USDT heaping pressure on Bitcoin which is already reacting after peaking on Apr-3. From sources, of the $1 billion, 60 percent is allocated for “private investors,” that is, whales and VCs.

Candlestick Arrangement

As it is, the pressure is on, and analysts’ opinions seem to be false. Investors are in and ramping up in lower time frames. We need not look far. From candlestick arrangement, not only are prices trading above $5,600 but the underlying momentum is high.

Notice that Bitcoin (BTC) prices are banding along the upper BB in a breakout trade complementing buyers of Apr-2. At the same time, there has been a complete reversal of Apr-25 losses meaning the bull breakout of early Apr-2 indeed valid.

However, from candlestick arrangement, risk-averse traders should take a neutral stand until after prices rally above $6,000. Once that prints out then they can buy on dips with targets at $8,500 more so if the accompanying breakout is with high transaction levels.

Technical Indicator

Our anchor bar was Apr-25, a bear bar with above average volumes marking a double bar bear reversal pattern of $5,600. With May-3 signaling buyers as it is wide-ranging, we expect volumes to pick up in days ahead if indeed buyers are in control. Ideal volumes should exceed 10k as prices rally away from $5,600.

Charts courtesy of Trading View

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.