Bitcoin (BTC) Rally Hits a Wall on Binance Hack News
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Binance Hack and Bitcoin (BTC) Price Outlook, Chart and Analysis:
- Binance admits to a large-scale security breach.
- Bitcoin rally halted but further gains remain possible.
IG Client Sentiment Data show how retail are positioned in a variety of cryptocurrencies. See how daily and weekly positioning can affect our trading bias. Bitcoin (BTC) trade data shows 79.0% of traders are net-long, a strong contrarian bearish signal. However, recent daily and weekly changes in sentiment suggest that Bitcoin may soon reverse higher.
Binance Crypto-Exchange Hacked and 7,000 Bitcoins (BTC) Stolen
According to a release from crypto-exchange Binance Tuesday, the company discovered ‘a large scale security breach’ which allowed hackers to ‘withdraw 7,000 BTC in this one transaction’. At current market prices, the loss was around $40 million+ and the theft came from the company’s hot wallet with all other wallets secure and untouched. Binance said their SAFU fund would ‘cover this incident in full’ and that no user funds will be affected.
The Binance issued Binance Coin (BNB) fell sharply post-release, hitting a three-week low.
The latest Bitcoin rally came grinding to a halt on the Binance news as it tested $6,000, its highest level since mid-November 2018. We noted recently that a gap on the charts suggested a short-term target of $6,111 and this may should still remain relevant once the Binance news has been fully priced into the market. Since the start of the year Bitcoin has also shown a strong correlation to USDTRY with BTC rallying on any Turkish Lira weakness.
If the $6,111 level is broken and closed above, old swing-lows between $6,540 and $7,380 come back into consideration in the medium-term. Initial support should be seen around $5,648.
Bitcoin (BTC) Daily Price Chart (August 2018 – May 8, 2019)
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