Bitcoin (BTC) price analysis: exchange hack brings out the sellers

drowning

Bitcoin is down 2% as the news of the latest exchange hack provides the catalyst to unlock the tight  rangebound trading over recents days.

That’s nothing compared to the rest of the market, with $5 billion wiped off overall crypto values in the past few minutes. Most top altcoins are down between 2 and 5%. Worst performer among those is TRON at $0.021

Daily trading volume bitcoin  has jumped above $4 billion. It was last at that level on 17 October.

The market has been waiting for a break in the unusually low volatility trading environment. It is the 30th tightest 12-day trading range ever for bitcoin.

btc tight range

1-hour BTC chart

The 1-hour BTC chart shows the the rapid drop in price which began at 11:00 UTC. It is now trading at $6,259.

BTC 1-hour chart

4-hour BTC chart

Near-term support is seen at $6,153 (purple line below), formed by the bottom of the candle of the the rise from below $6,200 on 15 October and the the trough of the sell-off on the 11th:

BTC support level

Another factor behind the bitcoin drop is the bounce in equity markets in Europe and the US, although the Chinese market fell again. Some may be taking the opportunity to dump crypto, especially the alts on the basis that the equity rebound is not a dead cat bounce.

Finally, the one-day chart shows that we are still very much in the descending wedge, with today’s pull back for bitcoin likely to being in buyers, judging by previous such moves.

Live BTC chart


About the Author

Pete Winston
I live and breathe crypto and have a small holding (BTC, ETH, EOS and XLM) that isn’t life-changing, so move along hackers! You can email me here: petewinston@coinintelnews.com

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