Bitcoin Puts the Brakes on as Another Exchange Gets Hacked

Bitcoin gained just 0.33% on Tuesday, following Monday’s 4.18% rise, to end the day at $6,734.8.

A range bound morning saw Bitcoin’s morning low $6,655 and high $6,870 steer clear of the day’s first major support and resistance levels, with an early afternoon rally taking Bitcoin through to an intraday high $6,848.2, before easing back to $6,700 levels by the close, the day’s high falling short of the first major resistance level at $6,917.73 and, more importantly, the 23.6% FIB Retracement Level of $7,026.

A lack of negative news provided support through the day, though relative to the broader market, the day’s gain was relatively lacklustre as the Bitcoin bulls continue to struggle through the early summer, with news of hacks and an anticipated roll out of new crypto regs in key jurisdictions weighing on appetite.

How long investors will sit on the side lines remains to be seen, but if governments and regulators fail to deliver in the coming weeks, sentiment may well shift, particularly as institutional money begins to enter the cryptomarket in more significant volumes.

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At the time of writing, Bitcoin was down 1.58% to $6,629.1, Bitcoin falling through the day’s first major support level at $6,641.67 to an early $6,560 low before recovering to $6,600 levels.

With the morning’s $6,739.9 high falling short of the day’s first major resistance level at $6,834.87, the failure to find sufficient support to break back through the first major support level at $6,641.67 will be an issue for the Bitcoin bulls and the broader market, as news of another South Korean crypto exchange being hacked weighed on sentiment through the early hours.

For the day ahead, a move back through $6,745 would support a run at $6,800 levels and the day’s first major resistance level at $6,834.87, though the news of another exchange hack will raise further concerns over how key governments and regulators will clamp down on exchanges in order to protect investor interests.

Failure to move back through to $6,700 levels would likely see Bitcoin pullback to $6,500 levels to test the second major support level at $6,551.73 before any recovery, the extended bearish trend formed at 5^th May’s swing hi $9,999 very much intact as Bitcoin is looking like it’s about to fall short of $7,000 levels for a 10^th consecutive day.

Elsewhere in the cryptomarket, NEO and Cardano’s ADA saw the heaviest losses through the morning, the pair down 4.67% and 4.27% respectively at the time of writing, with none of the majors in positive territory, today’s reversal giving investors more reason to lock in profits sooner rather than later to avoid being caught up in a cryptomarket reversal.

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