Bitcoin Retains Short-Term Bull Bias Despite Exchange Hack
At this time, the cryptocurrency is changing hands 6,630 on Bitfinex — down just 1 per cent in the last 24 hours and holding nicely over the Asian session low of $6,560.
BTC picture via Shutterstock
The cryptocurrency dropped from $6,740 to $6,560 after Bithumb — the sixth largest cryptocurrency market on the world by trading quantity — confirmed that the attack had occurred between late Tuesday night and early Wednesday morning , adding that about $32 million-worth of cryptocurrencies were stolen.
- BTC remains on the hunt for $7,024 (23.6 percentage Fibonacci retracement of the drop from $9,990 to $6,108).
- A daily close (according to UTC) over that amount could open the doors to $7,500–$7,600, even though the rally may be short-lived as the long-run technicals are still biased to the bears.
- A break under $6,510 (rising trendline support, as seen in the 4-hour graph ) would abort the short term view.
- A daily close below $6,000 would probably rekindle the bear market and might yield a drop in $5,000.
So, the short term outlook remains positive and only a break under the ascending trendline (dotted yellow line) would weaken the bull’s instance.
While the hack emphasizes the security risks that have plagued the cryptocurrency area and has potential to dent investor opinion, bitcoin is so far refusing to adopt the negative storyline.
As seen above, the shrill crossover involving the 5-day along with 10-day MA further indicates a short-term bearish-to-bullish trend change.
The Seoul-based cryptocurrency market has halted all withdrawal and deposit support to be able to ensure security and announced that it could fully compensate customers.
BTC also recently observed a bullish Bollinger Band breakout, as discussed yesterday.
Bitcoin (BTC) endured a minor dip last night after it had been revealed that hackers had breached a significant cryptocurrency market, but the graphs still prefer a corrective rally to $7,000.
BTC’s strength has guaranteed the technical graphs are retaining short-term bias, and is currently trading over the aid of the 50-candle moving average (MA) over the 4-hour graph, now at $6,545.