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Trouble appeared to be brewing for the well-known cryptocurrency exchange OKEx after one of its founders was held by police. Following the halting of withdrawals from its platform, Bitcoin’s price tanked over 3% in a matter of a few hours. The rest of the cryptocurrency market turned red shortly thereafter.

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However, this stint was short-lived as Bitcoin recovered despite nearing a crucial level of support of $11,366. This led to the altcoins, to regain traction and consolidate within the current range.

According to the crypto intelligence platform, Glassnode’s data, approximately 200,000 BTC or 1.1% of the total circulating Bitcoin supply] are currently held in OKEx wallets which makes up for roughly $2.3 billion worth of BTC stored in the exchange’s vaults. This is a massive amount and considering that OKEx happens to be a global exchange, hence, a quick sell-off was expected due to the uncertainty.

Source: Glassnode

Despite this, Bitcoin is unlikely to undergo a major price slump. Over the past couple of months, the world’s largest crypto has shown significant resilience to big news affecting the industry, be it the several high-profile incidents of fraud in the case of Kucoin or the latest Bitfinex fiasco.

One of the vital factors that have acted as a big hurdle for the growing industry is the disparate and uncertain regulation in various jurisdictions. Hence, investors could now be willing for different exchanges in different venues with a much clearer regulatory climate. And while this may not drive the cryptocurrency market to dive deep, it can, however, draw bad press for the exchange.

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While Bitcoin and the rest of the cryptocurrencies flipped green again, the same cannot be said for OKEx’s native token OKB which registered a decline of over 15% in the last 24-hours. At the time of writing, OKB was trading at $5.26.

Source: OKB/USD on TradingView

The entire episode in brief:

The platform informed suspending crypto and digital assets withdrawals in the wee hours of 16th October soon after revealing that it has lost contact with one of its private key holders who was “co-operating” in a Chinese government investigation. According to a report by China state-affiliated media platform, Caixin, it was Xu Mingxing, the Founder of OKEx and one of the exchange’s private key holders, who had been taken by police at least a week ago.

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Ketaki Dixit , 2020-10-17 08:41:37 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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