- Bitrue exchange hack causes anxiety across the crypto market as cryptocurrencies tailspin to key support levels.
- Bitcoin finds balance above $11,000 giving way for a reversal above $12,000.
The celebrations of Bitcoin grinding closer to $14,000 were cut short even before reaching their climax. Bitcoin formed a new 2019 high at $13,873 during the evening (GMT) session on Wednesday. However, the lack of momentum pulled BTC/USD into a reversal. Unfortunately, the reversal was going to open the Pandora box as bears sort revenge following several weeks of constant battering from the bulls.
Experts and analysts believe that the selloff was triggered by a hack attack on a Singapore-based cryptocurrency exchange referred to as Bitrue. Bitcoin corrected towards $11,000 but formed a low at $11,293. A shallow correction is underway with Bitcoin reentering the $12,000 level.
The confluence detector tool places the initial resistance at $12,010 (seller congestions zone). A couple of indicators converge to form the confluence and they include the Previous High 15-mins and the Bollinger Band 15-mins Middle. Trading above this level could open the road for Bitcoin to trend further up.
However, we can expect acute resistance to the move at $12,259 (seller congestion zone). Several indicators that converge here include the SMA 200 15-mins, SMA 50 1-h, Pivot Point 1-w R3, and the Bollinger Band 1-D Upper. Interestingly, further correction north will be largely interrupted until Bitcoin hits levels above $13,000 again where it will encounter resistance around $13,129.
On the downside, the first support according to the confluence detector tool lies at $11,762. The indicators that converge at this position form a confluence. They range from the SMA 10 15-mins, Previous Low 1-D, Previous Low 1-h and the Pivot Pint 1-D S1. In addition to this, Bitcoin is also supported significantly at $11,513, $11,265 and $10,768.
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