Untethered? Bitcoin Shrugs Off at Push into $ 8,500 Hack
Disclaimer: This guide shouldn’t be chosen as, and is not meant to provide, investment information. Before buying any cryptocurrency, please conduct your own thorough investigation.
Pullback situation: A break below $7,800 would add credence to bearish price-RSI divergence (found on the 4-hour chart) and may yield a fall to 10-day MA seen today at $7,400.
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Tether was put up as a proxy for US dollars that may be transmitted between trades, including many others, Poloniex and Bitfinex. Thus, the first response in the market was cautious, as traders weighed the potential market ramifications.
Bitcoin could put new highs around the immunity at $8,553 (0.618 Fibonacci extensions). As mentioned yesterday, doors for a rally have opened to $ 10,000.
Bitcoin is bouncing back from losses arising in the hack of an alternate cryptocurrency.
Released at Tue, 21 Nov 2017 12:15:21 +0000
The sell-off happened after company Tether reported a $31 million theft of its dollar-pegged token, USDT. As detailed in our upgrade, Tether blamed a “malicious activity by an external attacker” for the theft of $30,950,010-worth of USDT on Nov. 19.
Chain picture via Shutterstock
However, bitcoin shortly recovered into $8,100 levels, possibly as traders absorbed the information of Tether’s strategy to lock up the stolen tokens by updating its Omni Core applications customer.
- The preceding chart shows instant resistance at $8,553 (0.618 Fibonacci extensions).
Bitcoin Shrugs Off Hack Push to $8,500
- The sharp comeback from below $7,800 has resisted the bullish flag breakout.
- The relative strength index (RSI) is bullish (above 50.00) and well short of the overbought territory.
- A bearish divergence (greater highs in cost, reduced highs on the RSI) has been verified, but only a break below the very day low of $7,800 would open the doors for a deeper pullback.
In any event, BTC could stay well bid because investors may price-in the potential surge of institutional interest on the CME exchange.
The cost action analysis shows no significant signs of stress on the market.
The chart shows:
According to CoinMarketCap, the bitcoin-U.S. buck (BTC/USD) exchange rate climbed to a low of $7,762 at 04:59 UTC, before rapidly regaining to $8,100. At press time, the cryptocurrency is currently changing hands . Despite the huge gyrations, BTC is still up 0.66 percent on the day.