October 26, 2020

A Crypto Investor

Just another Crypto Guys Blog

Ascending channel Bitcoin price breakout possible despite OKEx scandal

Earlier this week Bitcoin (BTC) price entered a bullish breakout to $11,725 following the previous week’s news that Square purchased $4,709 BTC but since then the price has slumped back into a sideways range. 

Several rejections near $11,500 and the recent news of OKEx halting all withdrawals as its CEO ‘cooperates’ with an investigation being carried out by Chinese authorities is also weighing on investor sentiment and Bitcoin price.

Cryptocurrency daily market performance snapshot. Source: Coin360

The wave of negative news has pulled the majority of altcoin prices back into the red and extinguished the newly found bullish momentum Bitcoin displayed.

The daily time frame signals that losing $11,200 could open the door for the price to retest $11,100, a level which resides in a VPVR gap and would probably give way to a further drop to $10,900.

According to Cointelegraph Micheal van de Poppe, there is:

“Significant support at $11,000 is now a must-hold level to resume the bullish momentum, which may find difficulty clearing current levels as renewed coronavirus lockdowns are spooking investors.”

Van de Poppe suggests that if Bitcoin loses the $11K support there is a possibility of the price falling below $10K to the 200-MA at $9,750 which is near a CME gap.