Bitcoin Dives Below $7,000 Support Level Following Korean Exchange Hack
Coinrail claims to have frozen exposed NPER, ATX, and NPXS coins, and that other cryptocurrencies are now safely secured in cold storage. However, their website provides no additional information.
Other major cryptocurrencies followed Bitcoin’s drop including Ethereum, Litecoin, Ripple, Bitcoin Cash, EOS, and Monero. Additionally, the top 100 tokens are down as of June 10th, 2018, sending the entire crypto market cap below $300 billion for the first time since April 12th.
The seemingly widespread panic following the Coinrail exchange hack is unexpected since Coinrail is the 98th most popular exchange, with a 24-hour volume of around $2.65 million. Although, this is relatively insignificant compared to other prominent exchanges.
The Coinrail hack is not the only news influencing market prices. According to WSJ, the US Commodity Futures Trading Commission (CFTC) launched a probe into four major crypto exchanges. Investigators requested data to uncover price manipulation and the associated news may also be responsible for the market volatility.
Bitcoin, currently ranked #1 by market cap, is down 7.93% over the past 24 hours. BTC has a market cap of $115.68B with a 24 hour volume of $5.65B.
Chart by CryptoCompare
Though the future price of Bitcoin is unclear, technical analysis is often a useful tool for predicting price movement.
Looking at the naked BTC 4HR chart, we see two wicks bouncing off of the USD 6,630 mark, which may become a necessary level of support. Although, resistance often occurs when a level of support breaks.
The candle BTC 4hr chart shows two wicks bouncing off the $6,630 mark which may become a significant support level. Thus, Bitcoin may struggle to surface above $7,000 once again.
As always, traders should proceed with extreme caution.
Cover Photo by Kekai AhSam on Unsplash
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