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  • Chinese authorities arrest three individual involved found guilty for stealing $87 million worth of digital assets.
  • Bitcoin failed to break above $6,500 resistance resulting in bear reaction currently testing $6,400 support.

According to the Chinese news portal Xinhua, three individuals were arrested by the Chinese authorities after they were found guilty for stealing a large sum of Bitcoin and other digital assets. The arrests come after a month of active investigations in Hunan, Changchun province, and Beijing capital on August 15.

The investigation started after the victim of the heist, Zhang reported the incident to the police at Xi’an police headquarters in March 2018. His statement said that the criminals made away with at least $14.5 million in cryptocurrencies after they hacked the victim’s computer. Xinhua report says:

“On March 30, 2018, the Xi’an Public Security Bureau received an alarm from the victim Zhang, saying that his personal computer was suspected of being illegally invaded. A large number of virtual currencies such as Bitcoin and Ethereum were looted and the market value reached 100 million yuan. The Municipal Public Security Bureau quickly set up a task force to carry out the investigation.”

With the help from an anonymous website, the investigation managed to identify a suspect by the name Zhou. The suspect is said to be the one behind the hack and the two other suspect were identified to be accomplices of the incident. Criminal records identify the two suspects as expert hackers:

“After preliminary investigation, the suspects used remote hacking techniques to remotely control theft of highly secure virtual currency accounts without any operation of the victim, and almost no trace of committing crimes. Rare case.”

All the suspects have now been accused of perpetrating the disappearance of at approximately $87 million worth of digital assets.

Bitcoin price analysis

Bitcoin price trend has turned even more bearish on failure to clear the resistance at $6,500. BTC/USD stepped over $6,600 over the weekend, but the buyers lacked the upside momentum to sustain a support above this level. The lower corrections after that embraced the support at the 61.8% Fib level with the last high of $6,634.71 and a low of $5,914.15 at $6,358.99.

At the time of writing, BTC/USD is testing the short-term support at $6,400 coinciding with the trendline support. If this support is broken, the 61.8% support will come in handy. The next support target at $6,300 is strong enough to stop extended declines.

A look at the BTC/USD hourly chart shows that the trend is strongly bearish with the technical indicator like the stochastic oscillator pointing heading towards the oversold territory. The MACD momentum indicator is advancing towards the negative levels.

On the upside, a support at $6,400 will allow the bulls to plan recoil to $6,500 key resistance. Bitcoin keeps losing momentum on reaching $6,600, but if the buyers can sustain a support above this major resistance level, BTC/USD is likely to correct higher towards $6,700 and the ultimate resistance in the medium-term at $6,800.

BTC/USD 1-hour chart