FXEMPIRE
All

Bitcoin – Is This the Calm Before Bitcoin’s 10th Birthday Fireworks?

Bitcoin moves back through to $6,500 levels early, though holding on through the day may be an altogether different proposition.
Bob Mason
Bitcoin 3

A tough week for the broader cryptomarket saw just a handful of the crypto majors gain ground, while Bitcoin was left trailing, a 0.15% fall on Sunday leaving Bitcoin down 1.52% at $6,490.2 for the week.

Rising to a morning high $6,513.9 saw Bitcoin fall well short of the day’s first major resistance level at $6,519.07 before easing back to sub-$6,500 levels, which has become the new line in the sand for the Bitcoin bulls and bears.

An afternoon sell-off saw Bitcoin fall through the day’s first major support level at $6,463.17 to an intraday low $6,451 before testing resistance at $6,500 late in the day, with Bitcoin unable to hold on to $6,500 levels at the end of the day, following a late move through to $6,502.

On the news front, reports of a Bitcoin exchange being hacked in Canada will have been a negative, with all funds on the exchange reportedly stolen, though there are suggestions across the news wires that this was an ‘exit scam’ rather than an actual hack, meaning that the owners of the exchange have run off with the money.

The latest scandal, albeit smaller than the likes of the Mt Gox event, provides further justification to regulators to insist on appropriate controls and mechanisms including custody that would ultimately prevent such events from taking place.

For the investor, there are frequent warnings of leaving cryptocurrencies on the exchanges and not in wallets with private keys that would prevent loss of funds, the latest theft, whether a hack or an exit scam being a reminder to those that continue to assume that the market and exchanges are heavily regulated.

While Canada falls outside of the purview of the SEC, which is currently in the process of reviewing the 9 Bitcoin ETF applications that were submitted through the summer, the threat of theft or hack is ever present and would certainly need to be a part of the SEC’s mandate. Perhaps the current lack of volatility may ultimately wash away some of the smaller crypto exchanges that are not in it for the long haul and lack the funds or the know-how to meet any regulatory requirements that may be imposed by governments and regulators in the market’s next phase, ‘The Regulatory Overhaul.’

Get Into Cryptocurrency Trading Today

At the time of writing, Bitcoin was up 0.16% to $6,500.6, with Bitcoin recovering from an early morning low $6,478 to a morning high $6,512 before easing back, the range bound moves through the morning seeing the day’s major support and resistance levels left untested early on.

For the day ahead, a move back through the morning high $6,512 would support a run at the first major resistance level at $6,519.07, while we would expect Bitcoin to struggle to break out to bring the second major resistance level at $6,547.93 into play, with Bitcoin expected to continue facing plenty of resistance at $6,500.

Failure to move back through the morning low could see Bitcoin give up $6,500 levels and ease back through the morning low $6,478 to call on support at the first major support level at $6,456.17 before any recovery, the second major support level at $6,422.13 unlikely to be tested on the day.

Market impatience could begin to kick in that would support a further downward bias should Bitcoin fail to make a move, though the Bitcoin bulls may be biding their time, with Bitcoin’s 10th birthday on Wednesday a day where Bitcoin may be set free from the shackles.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US