- Bitcoin price has recovered from the dip heading to $6,250, but the movement above $6,400 to $6,500 is an uphill task.
- “Services are back to normal. Combination of DDoS and price action caused heavy load on data mirrors”¦,” BitMEX said in a tweet.
Bitcoin price has made a little progress on the day following the dip to the support at $6,250 during the evening trading session on Wednesday. The wild ride has been real for Bitcoin in the month of August. It declined below $6,000 and bounced off the primary support at $5,800. The upside movement saw Bitcoin come near $6,500 while the downside remained protected at the $6,200 support.
The surge yesterday saw Bitcoin recoil above $6,900 before correcting slightly lower. The buyers maintained the price above the 61.8% Fib level taken between the highs of $6,893.23 and the lows of $6,225.13. However, as covered in an earlier published analysis, Bitcoin broke down past the 100 simple moving average on the 15-minutes chart. The slide was unstoppable at $6,400 and $6,300 support areas.
Bitcoin has, however, corrected higher and is currently trading between the 50 simple moving average support and the 100 simple moving average resistance on the same chart. It is changing hands at $6,425 while struggling with resistance lines at $6,430 and $6,450. The 100 SMA also coincides with the 38.2% Fib level; both will provide stiff resistance, although the bulls have their eyes locked on $6,400.
Looking at the chart of BTC/USD, it shows slightly positive signs that are being suppressed by the rising selling pressure. The MACD, for instance, is ranging in the positive region while the gap between the moving averages is narrowing. This means that the buyers still have some buying power to edge above the bear pressure.
In other news, BitMEX one of the largest crypto exchanges by daily trading volume announced yesterday that they were facing a DDoS attack yesterday, August 22. The attack came at the time the platform was undergoing a routine maintenance. The announcement made on twitter said:
“Services are back to normal. Combination of DDoS and price action caused heavy load on data mirrors. Trading and marketdata feed response times remained normal while data fetches were slow. We are scaling that system and moving it out of the critical path of login.”
The downtime on BitMEX was believed to have been the catalyst that hiked Bitcoin from $6,400 to $6,800 in less than one hour. There was an influx of short positions that were trading at their all-time high. The market, however, generally believed that the surge was due to a short squeeze.
BTC/USD 15-minutes
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