Bitcoin Again on the Backfoot, Against the $10k Wall - Price Analysis

  • Short term: critical period, no trend
  • Long term: uptrend intact, although a breakdown here will force reinspection of levels

Bitcoin (BTC) is again revisiting $10,000 for the third time in August, toward the end of what seems like a consolidation pattern for the leading crypto. Whether it will hold here, again, is an open question,

We start on the 4-hour chart, and see that the support block from mid-August has bought up yesterday’s selloff. Volume on both the selloff and the catch have been small, as Bitcoin processes through a consolidation pattern that looks ready to start shaking out by end-August.

Again at $10k after easy rejectionBTC chart by TradingView

The moving averages (MAs) have been left behind again. If we look at the 4-hour indicators, we see the RSI stabilizing, and the MACD broadcasting an arc back toward the upside. But no real strong signals are here, including the limp volume on both buy and sell sides.

4-hour indicators say littleBTC chart by TradingView

However, if we take our reading down to the 2-hour indicators, things look slightly more favorable. RSI on this timeframe is diverging bullish versus price, and the MACD/histogram is clearly arcing back to green territory and looks about to cross over.

Some strength on 2-hourBTC chart by TradingView

Based on this low timeframe (LTF) reading, we might expect Bitcoin to not leave its consolidation pattern here, to the downside; we could expect another small bounce back to the (ever-shrinking) top of the pattern. But this is nowhere guaranteed.

Stepping back to the daily for the bigger picture, we see that one of two scenarios is probably playing out. The general retreat in volume (although it had started growing in August again) looks like consolidation, but of which pattern: a sideways triangle, or a falling channel?

BTC against the floor of the uptrendBTC chart by TradingView

Price does seem to be crowding the bottom of the triangle pattern. If it breaks down here, we will then look to the $8,000’s for support.

There is no way to know until it happens, but the market seems tepid at best. LTF indicators are not bad, but volume is apathetic (if not pathetic!). Buyers have to step in to support $10,000 again, if they want to avoid a breakdown. It is important to note, however, that neither outcome will damage the larger Bitcoin uptrend - and if we break down to $8,000, we will revisit this question.

The views and opinions expressed here do not reflect those of and do not constitute financial advice. Always do your own research.

$3.1 million: Crypto Exchange Cashaa Hacked for 336 BTC

London-based cryptocurrency exchange Cashaa revealed it lost 336 bitcoin, at press time worth $3.1 million, to hackers who managed to access one of its cryptocurrency wallets.

According to a tweet the exchange published on July 11, the attackers managed to access one of its wallets, and quickly transferred the funds to an address they control. From the address they went to the BTC has been through a series of hops, suggesting the use of coin mixing software to limit traceability and throw off blockchain sleuths.

Cashaa believes that the attacker may have managed to infect one of its computers with malware, and then waited for an employee to access its machine. As soon as that happened, the funds were moved out of its wallet. Reacting to the security breach, the exchange halted withdrawals and deposits and “called the board meeting to decide whether the company will bear all the losses.”

The exchange suspects the hacker is from east Delhi, India, and filed a report with the Delhi police cybercrimes department.

Cashaa also reached out to other cryptocurrency exchanges and businesses informing them of the address, in a bid to stop the hacker from cashing out. In statements provided to industry media Kumar Gaurav, Cashaa’s CEO, seemingly lashed out at trading platforms that allow hackers to cash out.

Gaurav was quoted as saying:

As of today, hackers are very confident to hack crypto addresses and move it through exchanges that are facilitating such laundering through their systems. Exchanges like these must be shut down and owners of these exchanges should be charged with money laundering facilitation crime.

CryptoCompare’s Exchange Benchmark report, as recently reported, revealed that 38% of crypto exchanges interact with high-risk entities in 25% or more of their transactions. High-risk entities are those associated with darknet markets and vendors, criminals, gambling projects, malware operators, and others.

Featured image by Kevin Ku on Unsplash