News of hacking this Sunday rocked crypto markets. According to the report a small South Korean cryptocurrency exchange, Coinrail, as reported by top-tier media, was hacked. The reaction to the hack news seems a little exaggerated when you find that the 24-hour chart traded at Coinrail is just 2.65 million USD. While the hackers made away with 40 million USD worth of digital tokens, the panic sales wiped off at least 42 billion USD of the total crypto market cap through the weekend.
Bottoms are usually formed during periods like this when there’s a selling stampede. Weak hands close up their positions while stronger hands highs use the opportunity to purchase tokens at lower levels. These sharp falls in Bitcoin and other digital currencies can also be an opportunity for long-term investors to build their position in the market. However, traders shouldn’t be in haste to establish new positions when crypto markets are in a bear grip. When should you start buying? Let’s see what Bitcoin charts indicate.
Bitcoin to USD Price Analysis
The recent bounce in Bitcoin as at May 29 didn’t break from the 20-day EMA. This resulted in new shorting by the bears. After prices broke below support levels, the bulls had to liquidate long positions. However, selling increased when Bitcoin broke below the 7,100 USD support level. The support level between 6,700 USD – 6,900 USD is not finding buyers as well which increases the likelihood of a drop to 6,075.04 USD which is the next support.
The only thing that may favour the bulls is RSI. Historically, the pair has provided a robust tradeable rally from the oversold territory on the RSI. Any more fall, Williams lead the RSI into the oversold territory deeply. Should history repeat itself, Bitcoin should get a strong rally. However, any recovery will likely face strong selling on the small trendline support and the 20-day EMA. Hence it is suggested that you wait for this decline to end before making any long positions.