Bitcoin, Altcoins Crash on Exchange Hack

FXOpen

Bitcoin and most altcoins crashed late Tuesday/early Wednesday after news emerged that the major exchange Bitfinex got hacked. Initially, prices dipped by only $50, from around $601 to $551 per coin on FXOpen. But when the scope of the hack got revealed (120k Bitcoins), prices crashed almost $100 extra to hit a low of $469 before recovering. After a sizable retracement, we are currently quoted at $564 per coin. Let’s go over our two altcoins (PPC/NMC) and then we’ll get back to Bitcoin.

Peercoin Enters a New Downtrend

Peercoin entered a new downtrend after a break of $0.355 on Tuesday. Similarly to Bitcoin, we saw a ‘flash crash’ to a low of $0.297 followed by a recovery to $0.345 right now.

PPCUSDH4-aug4

The 29 cents level is also a one-year low for PPC/USD, so it`s not a surprise prices took a breather there. A break below here would open the door to the multi-year low at $0.211 per coin.

On the upside, a break of the $0.431 swing high would end the current downtrend. The hurdle to start an uptrend is set much higher at $0.524 per coin. A breakout above here could open the door to the next important level at $0.57.  With the recent move lower the medium-term (weekly) trend for PPC/USD is now down too. The long-term (monthly) trend remains neutral.

Namecoin Joins Selling

Alternative cryptocurrency Namecoin joined the selling party on Tuesday. Prices first broke the key 35 cents support, then extended the move to a low of $0.28 on Wednesday as BTC crashed. We are currently trading substantially higher at $0.32 per coin.

NMCUSDH4-aug3

Namecoin is now in a (short-term) downtrend as well. A break below the 2015 low at $0.274 could lead to further losses. The medium-term trend has switched to the downside but the long-term trend is undecided.

On the upside, we will need to see a breakout above $0.371 to end the downtrend. A move beyond the 44 cents level is needed to kick-start a new rally. Above here we find resistance levels at $0.476, followed by $0.48 and $0.50. A breakout above the 50 cents round figure may extend the gains to the swing high at $0.54.

Bitcoin Crashes, Recovers

Bitcoin extended the losses after entering a downtrend this week. The move lower was exacerbated by the hack of course. Despite the recovery, a decisive break above the $650 figure is needed to end the current downtrend. A new rally requires a move above the $670 level as well. For more levels, take a look at our Tuesday article.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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