Bitcoin Price Analysis: BTC/USD Tumbles, Now What To Do?
Bitcoin price collapsed against the US dollar, as there were reports of a BTC exchange being hacked and BTC’s were stolen. Know More.
There was a nasty decline in the BTC/USD pair, as it collapsed from $600 to $465 before recovering. There is now a new resistance trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which may act as a hurdle for more recovery in the short term.
Bitcoin Price Decline
I pointed out yesterday that the BTC is under a lot of pressure against the US Dollar and may decline further. There was a sharp drop in the price, as there were reports of a hack.
A report on Fortune stated that “Hong Kong-based digital currency exchange Bitfinex said late on Tuesday it has suspended trading on its exchange after it discovered a security breach, according to a company statement on its website”.
There was a sharp downside move in the BTC/USD, which not only took it below the $600 level, but also $500. A nee weekly low of $465 was formed. The price after forming a new low started to recover, and has already moved above the 23.6% Fib retracement level of the last drop from the $656 high to $465 low.
There is a chance that the price may continue to move higher, but it may face sellers near a new resistance trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD.
Moreover, the 50% Fib retracement level of the last drop from the $656 high to $465 low may also act as a hurdle for a recovery in the near term.
So, if you are a buyers, then look to take profits around the $560-80 levels in the near term.
Chart Source – TradingView.com and data feed by Bitstamp