Bancor Hack Drives Down Market, but Bullish Reversal Imminent as Volumes Rise
Bitcoin has dropped 5% in the day after yesterday’s news that the Bancor decentralized exchange had been hacked. This news has seen bitcoin (BTC) break below the 21-day moving average at $6438. This is a short-term bearish signal, one that might see bitcoin (BTC) test $6000, in the next 24 hours, $6000 being the next major support level, in the day.
From intra-day activity, volumes show that bitcoin (BTC) might be about to rise.
Volumes have been rising in the last 6 hours, indicating that the news of this hack has been fully absorbed by the market. If the trend continues, it may see bitcoin push up to around $6900, which is the first resistance level. The surge in volumes also goes to show that investors are more bullish in bitcoin (BTC), and in crypto in general.
The post-hack drop has been minor at best, compared to previous hack-related news. At the heat of the bear market, such news would have led to a huge drop in the value of bitcoin (BTC), by over 10%.
Following the Bancor hack, Ethereum just like the rest of the market has dropped. It is down by 8% in intra-day trading and looks set to test the $412 support level. In intra-day trading, Ethereum volumes have gone up slightly indicating that investors are taking advantage of these low prices to buy into Ethereum.
A further increase in these volumes could see Ethereum reverse and test $485 in the next 24 to 48 hours.
The possibility of an Ethereum bullish reversal is also supported by bitcoin’s volumes increase. Since Bitcoin (BTC) takes the whole market with it, it then follows that a rise in its price could also support Ethereum (ETH). If Ethereum (ETH) breaks above $485, it could test $530, which is the next major resistance level to the upside.
The key thing to watch at this moment is volumes. If volumes rise, then a long entry into Ethereum offers a low-risk buy entry.
IOTA (MIOTA) is down by 8% in the day, following bitcoin’s drop after the Bancor hack. It has dropped from $1.03 to its current price of $0.97 breaking below the 21-day minor support level in the day. However, in intra-day trading, volumes have pushed up, an indicator that money is flowing into IOTA (MIOTA).
Further increase in volumes in the entire market could see IOTA (MIOTA) retest $1.03 in the day. A break above this level could see it hit $1.25.
IOTA (MIOTA)’s upside momentum is going to be supported by the upcoming hackathon in Munich where IOTA (MIOTA) will be a major participant alongside major vehicle manufacturers including Volkswagen and BMW. As such, IOTA (MIOTA) offers some good prospects for an investor looking not just at the short-term, but the medium-term as well. Its risk/reward ratio is very favorable.