Bitcoin Price Steady Above $6K Despite Bithumb Hack

Bitcoin (BTC) suffered a minor dip final evening after it was revealed that hackers had once more breached a serious cryptocurrency trade, however the charts nonetheless favor a corrective rally to $7,000.

The cryptocurrency fell from $6,740 to $6,560 after Bithumb – the sixth largest cryptocurrency trade on this planet by buying and selling quantity – confirmed that the assault had occurred between late Tuesday evening and early Wednesday morning native time, including that about $32 million-worth of cryptocurrencies had been stolen.

The Seoul-based cryptocurrency trade has now halted all deposit and withdrawal service in an effort to guarantee safety and introduced that it might totally compensate clients.

Whereas the hack highlights the safety dangers which have plagued the cryptocurrency area and has potential to dent investor sentiment, bitcoin is to date refusing to embrace the unfavorable narrative.

At press time, the cryptocurrency is altering fingers at $6,630 on Bitfinex – down simply 1 % within the final 24 hours and holding effectively above the Asian session low of $6,560.

BTC’s resilience has ensured the technical charts are retaining short-term bullish bias, and is buying and selling above the assist of the 50-candle transferring common (MA) on the Four-hour chart, at present at $6,545.

Four-hour chart

The chart exhibits a rounding backside – a bullish reversal sample – which means sentiment has step by step shifted from bearish to bullish during the last 10 days. The relative energy index (RSI) can also be holding above 50.00 (in bullish territory).

BTC additionally lately witnessed a bullish Bollinger Band breakout, as mentioned yesterday.

So, the short-term outlook stays optimistic and solely a break under the ascending trendline (dotted yellow line) would weaken the bull case.

Day by day chart

As seen above, the bullish crossover between the 5-day and 10-day MA additional signifies a short-term bearish-to-bullish development change.

View

  • BTC stays on the hunt for $7,zero24 (23.6 % Fibonacci retracement of the drop from $9,990 to $6,108).
  • A each day shut (as per UTC) above that stage would open the doorways to $7,500–$7,600, though the rally may very well be short-lived because the long-run technicals are nonetheless biased to the bears.
  • A break under $6,510 (rising trendline assist, as seen within the Four-hour chart) would abort the short-term bullish view.
  • A each day shut under $6,000 would probably revive the bear market and will yield a drop towards $5,000.

High picture by way of Shutterstock

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