Bitcoin Stabilizes as Traders Wait for Clarity

FXOpen

Bitcoin prices have somewhat stabilized around the $580 handle. Market participants are still waiting for more info from the hacked exchange Bitfinex before making up their minds. The technical bias, however, remains the same with both Bitcoin and Litecoin in a downtrend.

Bitcoin Traders Wait for Bitfinex

Bitcoin traders are still in a ‘wait and see’ mode after Bitfinex, the largest USD exchange by trading volume, got hacked last week. The exchange allowed read-only access on Sunday and is asking everyone to change their passwords and 2fa tokens. What everyone will notice right after they log in is that 36% of their assets have been replaced by a ‘BFX token’. This is a ‘haircut’ applied by Bitfinex to each account to compensate for the loss of over 100,000 Bitcoins.

BTCUSDDaily-aug9

If in fact, Bitfinex does decide to go through with this plan, they will have to purchase the lost BTC with USD (mostly). This may create a short-time price spike. But many legal challenges remain before this plan can be applied. Many argue that this is illegal for Bitfinex to dip into customers` USD to compensate for the loss of Bitcoins.

Let’s turn to the technical picture. As we`ve mentioned above, BTC/USD is still in a downtrend. The bulls will need to push prices above the $650 mark to end it. Below the current support near $578, a stronger level can be found at the $540-$550 area on FXOpen. Further down the round figure at $500 is another notable support. The breakout point for the latest major rally at $462 per coin is a major level to watch. We retested this level with prices bottoming out at $469 during the crash last week. This confirms the validity of this level as strong support. A break below it would intensify the losses.

Litecoin Still in a Downtrend

The long LTC downtrend that started almost 2 months ago continues. We are currently quoted at $3.74 per coin. Similarly to BTC, we’ve somewhat stabilized after the Bitfinex hack. Here are some of the levels to watch.

LTCUSDH4-aug9

A breakout above the $4.04 high is needed to end the current downtrend. Below the current prices, support can be found in the area from $3.50 to $3.61. Further down we find another support area from $3.22 (last week crash low) to $3.30 per coin. A breakdown below here could extend the losses to the round $3 figure.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

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.

Latest from Cryptocurrencies

BTC/USD Price Exceeds $60,000 Per Coin Bitcoin Price Risks Not Staying above $50k Ethereum Price Falls after Exceeding $3,000 Ethereum Price Exceeds $2,800 Bitcoin Price Exceeds Psychological Level of $50k

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: CAC 40, AUD, OIL, AMAZON

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. European Stock Markets on

Commodities

Price of Gold Briefly Exceeded $2,050 per Ounce

In addition to new records in the stock markets, the reaction to yesterday's news about inflation in the US was also a decrease in government bond yields and a rapid rise in the price of gold — the cost of XAU/

Indices

Nasdaq-100 Price Hits All-time High after 4 Straight Months of Gains

The Nasdaq-100 index is holding above 18,000 today following yesterday's bullish momentum, fueled by inflation news. The PCE consumer spending index amounted to 0.4% on a monthly basis, which was in line with analysts' expectations. A year ago,

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.