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Coinrail Hack Washed 10% off Bitcoin Price – Trading Volume up by 50%

Bearish sentiments prevail with no positive indications in sight

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Bitcoin Price Down 10%, yet Volume up 50%

The June 10th Coinrail incident led to about $40 million being stolen from the cryptocurrency exchange. What it also washed off was a good $28 billion’s worth of cryptocurrency market capitalization. It also led to a dive in the price of Bitcoin (BTC). Bitcoin price plunged by over 10% (from over $7,500 to $6750) in one day to prices last least in early April 2018. What tends to remain unnoticed here though is that albeit price is down, Bitcoin’s trading volume has risen over the past 24 hours. From $3.8 billion, the trading volume for Bitcoin is now up at $5.9 billion (as of June 11th, 5:30 PM UTC) – that’s a 50%+ gain in trading volume in just 1 day.

BTC Price Analysis

From a technical analysis perspective, market sentiment for Bitcoin remains bearish as of now. Bitcoin’s price has been largely following a declining trend since early May. It broke its immediate support line of $7,837 on May 22nf. Since then, $7,837 has been acting as the new-found resistance level, with the price now eyeing its next and key support level of $6,578. The key support is already in sight (and very close) with Bitcoin (BTC) currently hovering at around the $6,750 mark.

Moreover, market momentum remains low with the relative strength index at <30, low enough for market traders to anticipate an oversold market for Bitcoin.

Moving averages provide no respite either. The 14 and 50-day moving averages (SMA-14 and SMA-50, respectively) seem bearish too. The SMA-14 is clearly declining, indicating short-term bearishness in the movement of Bitcoin price. The SMA-50 is somewhat flat, higher than its April-end lows, but still directionally southward treading.

Price Points to Watch Out For

For now, the key support level of $6,578 is the key price point to watch as Bitcoin continues to shed cents off its price. If Bitcoin will rebound in the near term, it should be around this level. However, considering muted market momentum and aggregate market FUD, there is a good chance of BTC breaching the $6,578 level and sliding further, much to the disappointment of Bitcoin investors and the joy of bargain hunters. The overall sentiment though, remains bearish for now.

Image Credit: Deposit Photos

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