Yesterday, all trading on the cryptocurrency exchange Bitfinex was stopped, money withdrawal and digital deposits were also frozen.
Bitfinex suffered an exchange security breach that led to about 120,000 Bitcoins being stolen. This was the signal for a sharp sell of bitcoins on the exchange.
As a result, the sales price of Bitcoin fell to $ 517. Michael Patryn from Canada, co-founder of Quadriga Fintech Solutions, and Founder of Fintech Ventures Group, gave the following comment on this subject to CoinIdol.com:
“Quite a bit of FUD has been priced in, but in doing so, the order books were cleared. The hackers would want to sell their coins, everyone on bfx with a margin long is getting rekt, etc etc. I expect another downward push soon.”
In the near future, the Bitcoin price may face another wave of volatility because of the ban by French authorities of online Forex and Binary Options advertising, where the level of leverage is higher than 1:20. Such a ban was raised by the numerous complaints from ordinary citizens of fraudulent brokerages. But we must note that Forex is not only a market for physical currencies, it is also a market for Bitcoin The ban on advertising and the restrictions that the French authorities have carried out, may cause a slowdown of Bitcoin trading, and thereby affect the price.
Today, Bitcoin trading continues at a price of $539. The rebound was driven by a pending order to buy from a level of $520 or more. We should expect the resumption of the upward trend, as the price for Bitcoin today is very competitive for buying, so, growth expectations are justified.
BTC/USD exchange rates for last 7 days:
On the macroeconomic front, we expect the publication of the US ADP employment report and business activity in the ISM services. Data output higher than expected will support the Dollar against the Euro. Reducing the EUR/USD exchange rates may have a positive influence on the growth of Bitcoin as well.
Today we expect the completion of Bitcoin price reduction and trades in the corridor of $530-550. $520 is a support level. $550 is a resistance level.
This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency.