Trending News: Plus Token causing price volatility?
Plus Token is a Cryptocurrency Wallet that reward users with high returns which will be generated by exchange profit, mining income and referral benefits. They were listed on the Chinese stock market as a legitimate Crypto Investment firm. Plus Token ended up being a Ponzi Scheme that has scammed well over $3 billion worth of Cryptocurrency. It is believed these scammers are liquidating large amount of Bitcoins via OTC brokers (mainly the broker called Huobi). The below graph shown by Zerohedge illustrates that every time Plus Token sent a large volume of Bitcoin to Huobi, the next day the price of Bitcoin drops significantly.
Data: Courtesy of Zerohedge
The On Chain volume is the amount of Bitcoin moving from Plus Token to Huobi. The Off Chain volume refers to the amount of Bitcoin to other currency such as Tether. The record shows the scammers have consistently exchanged their stolen Bitcoin for Tether. You can see from the graph when Bitcoin falls at the same time On Chain and Off Chain trade volume increases significantly.
Data: Courtesy of Zerohedge
To summarize, you cannot say with 100% that Plus Token scammers were fully responsible for the volatility in Bitcoin price and you cannot predict when and how much Plus Token scammers will again sell into the open market, but you can predict the probability based on analyzing the Elliott Wave count. If you look at the events in September 24th, our EW count was predicting a huge move down after coming out of the triangle. It shows how important of a role elliott Wave plays in forecasting Bitcoin’s price movements. This is to remind our investors, focus on the psychology of the Elliott Wave count not the passive news coming out from the likes of Plus Token.