Bitcoin (BTC) Uptrend is Firm, Binance $42 million Loss a MINOR Blip

Bitcoin (BTC) Uptrend is Firm, Binance $42 million Loss a MINOR Blip

 
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Latest Bitcoin (BTC) News

Well, perhaps you have heard this for the umpteenth time: Binance is no longer a vault, a fortress for crypto traders. That the world’s largest exchange by adjusted volumes is fallible. Yes, just like BitFinex and even Cryptopia. But what stands out from this hack is the way Changpeng Zhao addressed it. He was forthright. Honest. Transparent and straight to the point. His exchange had regrettably lost 7,000 BTC or roughly $42 million in fiat terms of investor’s funds forcing them to trigger unscheduled maintenance.

Read: Traders Move over $165 Million from BitFinex in Less than 12 Hours

Even so, it is the level of transparency that is admirable and more good news is that only two percent of the exchange’s Bitcoin (BTC) hot wallet was affected. This is a small dent—but hug for critics—and the affected will be compensated in full thanks to an investment policy which the exchange had procured, financed from trading fees. So, yes, funds are SAFU and another reminder that we are in the early stages of a revolution.

See Also: New Survey: Millennials Prefer Bitcoin to Stocks

Bitcoin is just but a decade older and it is common for initial infrastructure to be full of flaws. That’s what exchanges are finding themselves at. As soft targets for sophisticated hackers employing every technique out there to “harm” and stain the image of the sphere. Even in the midst of this, remember there is an evolution. Regulators are interested in Bitcoin so are institutional grade investors and even governments aiming to draw revenue from a burgeoning multi-billion sector. There is lighting network and Fidelity, a multi-trillion asset management firm, plans to offer custodial services.

BTC/USD Price Analysis

On to the chart and Bitcoin (BTC) is weathering the “Binance’ storm, adding 11 percent from last week’s close. The recovery is strong and whereas critics will talk of hacks, technical candlestick arrangement point to bulls.

From the chart, we note that the uptrend is firm and as traders fine tune entries in lower time frames, their interest remains high as candlestick band along the upper BB. This, if anything, is bullish. Nonetheless, it is imperative that traders build enough momentum, reversing losses of Nov 2018.

Current price action is oscillating within the bar’s high low and in an effort versus result point of view, this is bearish and could slow down bulls. Therefore, while risk-off traders can load up on dips, risk-averse traders should stay on the sidelines as they wait for a high-volume, close above $6,000 invalidating the bear breakout trade of Nov 2018 allowing for the unbridled flow of buyers aiming for $8,5000. On the flip side, any drop below $5,600 could catalyze a sell-off towards $5,000 or lower.

Chart courtesy of Trading View—CoinBase

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.