As a seasoned crypto investor with several years of experience under my belt, I have learned to navigate through market volatility and unexpected events like the recent hack attack on India’s WazirX exchange. The attack, which resulted in over $201 million worth of tokens being stolen, caused a ripple effect that saw Bitcoin’s price falter below $64,000 from its earlier high of $65,000.
The cryptocurrency market has been turbulent since it was announced that India’s WazirX exchange had been hacked, resulting in over $201 million being stolen in various tokens. Following this news, Bitcoin‘s price dipped below $64,000 after briefly reaching $65,000 earlier in the week.
The largest cryptocurrency, despite being generally steady, experienced a slight decrease of 0.85% in value on Friday. Notably, major altcoins like Ethereum, Solana, and XRP showed impressive robustness in the face of this unexpected price adjustment, highlighting their maturity and ability to handle market fluctuations.
What’s Next As Bitcoin Enters New Accumulation Range
The significant increase in price from the support level at $54,000 to peaks of $65,000 brought about a profound shift in market sentiment. Investors were elated, looking forward to an extended surge towards $70,000 – a potential trend-setting leap fueled by fear of missing out (FOMO) and pushing new record highs.
In other words, the hack on WazirX occurred at a time when the Bitcoin price was showing signs of a normal correction. For the Bitcoin price to have reached $70,000 without interruption, the bulls would have had to temporarily step back.
Supporting the correction at $64,000 requires additional buying activity from investors, who expect Bitcoin to surpass $70,000.
Based on the four-hour price chart’s analysis, the level of $64,000 emerges as a robust support for potential buy orders. Although a few technical indicators exhibit bearish tendencies, the majority are bullish, which we will delve into further. This observation underscores the dominance of buyers in the market.
Bitcoin Price Analysis As Chances Of Further Growth Increase
The MACD indicator, which is commonly used in technical analysis for stocks and cryptocurrencies like Bitcoin (BTC), suggests a bearish outlook based on its recent signals. If BTC’s price fails to close above the MACD indicator level, traders might decide to abandon their long positions and take up short positions instead. This could intensify the market instability, potentially pushing the price down further towards $60,000.
To avoid finding yourself in an unfavorable position, it’s crucial to take into account all potential outcomes. With the recent formation of the golden cross pattern where the 50-day Exponential Moving Average (EMA) surpassed the 200-day EMA, the subsequent decline to $64,000 could provide an opportunity for investors to gather resources in preparation for the upcoming price surge.
The 50-day and the 200-day EMAs are in line to prevent declines from stretching to $60,000.
As a researcher studying market trends, I’ve observed that holding above the 20-day Exponential Moving Average (EMA) indicates a subtle but growing bullish trend. Consequently, finishing a trading session above this benchmark significantly reinforces the bulls’ position, thereby fostering favorable conditions for potential short-term gains.
Traders may be drawn to Bitcoin as its price potentially breaks through the resistance level of the upper descending trendline, leading to a potential rise of around 12%. If this occurs, Bitcoin’s value could surpass the $72,000 mark.
Based on current market analysis conducted by CryptoQuant, there’s a possibility that Bitcoin (BTC) may have reached its lowest point as major sellers begin to exhaust themselves. The German government’s selling pressure kept Bitcoin’s price in check last week. Additionally, payments made to Mt. Gox creditors from the defunct exchange further delayed any potential recovery for some investors.
As the demand to sell decreased, sellers collectively experienced a loss of approximately $2.5 billion. In the aftermath of the recent price adjustment over the past day, the derivatives market recorded around $44 million in liquidations.
At Coinglass, Long’s positions amounted to approximately $31.8 million of the total liquidated positions, whereas shorts were at around $11.88 million. A return to $70,000 could be a gradual process due to the liquidations and a negative 0.005% Bitcoin funding rate based on the Open Interest weighted rate.
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2024-07-19 15:46