The analyst further stated that he expects BTC to experience another interim bounce at around $60,000 before the Bitcoin price crash to $50,000. Meanwhile, CrediBULL Crypto expects a rejection soon, meaning a price correction from the $66,000 range could be imminent. In another X post, the analyst provided more insights into why he was still bearish.

He stated that the recent BTC rally was primarily driven by the perpetuals market, not the spot market. He highlighted the divergence between the perp and spot Cumulative Volume Delta (CVD) and how short liquidations helped fuel the move up.

CrediBULL Crypto added that the spot market has already begun selling off the spike while the open interest (OI) rises and perp CVD continues to climb without funding.

Basically, the analyst suggested that a Bitcoin crash is likely to happen after this rally since the price surge has pushed the flagship crypto into the local supply from the last breakdown. This means that many sellers are waiting to sell at this level, with such selling pressure likely to send BTC tumbling again.

Another crypto analyst, BTC Insider, shares a similar bearish sentiment as CrediBULL Crypto. He predicts that there will still be a price crash to $50,000. The analyst stated that he will still be looking to short the flagship crypto even if its price reaches between $68,000 and $70,000.

BTC Is At A Crucial Point

Crypto analyst Ali Martinez also suggested that the Bitcoin price is at a crucial point, stating that the flagship crypto is, for the fifth time in recent times, testing its 200-day moving average (MA). A rejection at this level would likely spark another price crash, although it remains to be seen if it would drop to $50,000 as CrediBULL Crypto predicts.

Martinez had earlier predicted that there could be a Bitcoin price crash to as low as $57,000 once the crypto rebounds to $66,000, as it has done. However, he isn’t as bearish as CrediBULL Crypto as he expects BTC to break out to a new all-time high (ATH) of $78,000 once it retests $57,000. For now, the analyst believes that Bitcoin would need to hold above $65,000 to confirm a bullish reversal.

This aligns with a CoinGape analysis, which noted that a weekly candlestick close above the $65,000 support level could propel a rally to $70,000.

Meanwhile, based on an analysis by trading firm QCP Capital, BTC is on the right path to hitting a new ATH. The firm noted that the crypto is following historical patterns. In 2016, BTC didn’t begin its rally until three before the US election and its price doubled by January 2017.

Something similar happened in 2020 as the Bitcoin price started rallying from $11,000 just three weeks before the US election, reaching a high of $42,000 by January the following year. As such, BTC could well be on its a way to a new ATH which it could reach by January next year.

The Securities and Commodities Authority of the United Arab Emirates has launched an investigation into alleged securities violations involving the cryptocurrency $WAP, a Solana blockchain-based token heavily promoted by high-profile celebrities like Cardi B.

The probe came in the wake of a formal complaint from a prominent Dubai-based VC firm and local Emirati investors.

It accused market manipulation and fraud concerning the promotion and trading of $WAP.

Cardi B’s Crypto Endorsement Under UAE Investigation

The UAE Securities and Commodities Authority opened an investigation into potential securities law violations involving the Cardi B-endorsed cryptocurrency $WAP.

The crypto wallet address rapper Cardi B shared while shilling WAP tokens that reportedly belonged to a famous crypto scammer.

Cardi B posted to her official X account a promotional message touting WAP.  WAP is a cat-themed meme coin that co-opts the name of the rapper’s hit song. Message included a video of WAP’s mascot – an animated cat – alongside a wallet address. Crypto security analysts have identified the address as a figure tied to prior nefarious activity in the cryptocurrency market. This has raised concerns about the endorsement and potential risk to investors.

The investigation has revolved around charges that the $WAP token was part of a “pump and dump” scheme. According to the SCA, the token was manipulated by promotional activities through key opinion leaders and insiders. They were allegedly paid to pump up the cryptocurrency on different social platforms. These kind of wrongdoings are not new. Recently, the Federal Bureau of Investigation has played a big mind game by launching a fake crypto token called NexFundAI to expose large-scale crypto pump-and-dump scheme.

According to reports, promotional activities included a network of influencers who, in turn, received hefty chunks of the $WAP token for free.

Analytics firm Bubblemaps suggested that, in this case, heavy bundling of supply and strategic sales drove the token’s price up before the insiders offloaded their inventory at the loss of retail investors.

Several social media accounts were reportedly involved in the scheme, according to an investigation that alleged coordination had been in place to influence or manipulate the market valuation of the token.

UAE Probes Crypto Token Promotion: Potential Securities Violations

Specifically, the results of SCA identify that promoters and traders of $WAP have violated various provisions of the UAE and US securities laws related to market manipulation and non-disclosure of financial interest. These violations can result in severe punishment, including heavy fines, a ban on trading, and even criminal charges against the perpetrators if proven.

UAE is, on the other hand, very crypto friendly. Just recently, OKX announced that it officially launched its trading platform in the United Arab Emirates to all retail and institutional investors after acquiring a full operating license.

Cardi B and other influencers’ involvement have made this investigation that much more complex. In the cryptocurrency market, it’s not uncommon for tokens that celebs endorse to rapidly increase in price. This provides room for manipulative practices that may be hard for regulators to uncover in real time.

Furthering the investigation, the SCA has written to X for information relating to accounts promoting $WAP. It is now calling on the cooperation of US regulatory bodies such as the SEC to ensure an in-depth investigation of the allegations.

A Case for Tighter Oversight

The probe into $WAP underlines some persistent areas of concern in cryptocurrency market regulation. Celebrities such as Cardi B and social media influencers often shill tokens. Tokens can easily be hyped up and gather market momentum, which might also make them easy targets for pump-and-dump schemes. Besides hurting individual investors, such schemes reduce public trust in digital assets.

This case thus gives a strong signal for increasing regulatoins regarding the social promotion of cryptocurrencies by  public figures.

It raises questions about the responsibilities of social media platforms about proliferating the product promotion with fraudulent intent. As the SCA and other regulators dig deeper, increased regulation of cryptocurrency markets to protect market integrity may be near.

This case could set a precedent for cases involving the promotion of crypto by celebrities such as Cardi B. It may also trigger increased regulation and more caution from influencers regarding the advocacy of cryptocurrencies.

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Teuta

Teuta is a seasoned writer and editor with over 15 years of experience in macroeconomics, technology, and the cryptocurrency and blockchain industries. Starting her career in 2005 as a lifestyle writer for Cosmopolitan in Croatia, she expanded into covering business and economy for several esteemed publications like Forbes and Bloomberg. Influenced by figures like Don Tapscott and Bruce Dickinson, Teuta embraced the blockchain revolution, believing crypto to be one of humanity’s most crucial inventions. Her fintech involvement began in 2014, focusing on crypto, blockchain, NFTs, and Web3. Known for her excellent teamwork and communication skills, Teuta holds a double MA in Political Science and Law, enjoys punk rock, chablis, and has a passion for shoes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.