Bitcoin Extends Declines Amid Friday’s Korean Exchange Raid

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by | 14th May 2018 | 0 comments

Bitcoin is opening the week with more losses after falling more than 6% on Friday amid news that South Korean prosecutors raided the offices of Upbit, one of the world’s largest cryptocurrency exchanges.

The king of cryptocurrencies is trading at 8,350 against the US dollar, down 3.8% so far on Monday. BTC/USD is extending its Friday’s decline after trading slightly positive on Saturday and Sunday.

On Friday, BTC/USD lost the 9,000 level and fell to 8,333. Then, the unit declined to near 1-month low around 8,205 on Saturday. The drop came after news from South Korea said that the police raid Upbit offices.

Korean Financial Intelligence Unit, Financial Services Commission and Seoul Police raided Upbit for suspected fraud as the company would falsely report the number of funds that it holds. The company is also accused of fraud for allegedly selling cryptocurrency to customers that Upbit does not hold.

On other news, HSBC reported that they performed the first trade finance transaction using blockchain technology. HSBC and ING completed a deal for food and agricultural group Cargill.

Vivek Ramachandran, global head of innovation and growth at HSBC’s commercial banking unit, commented that “what this means for businesses is that trade finance transactions have been made simpler, faster, more transparent and more secure.”

Finally, the Blockchain week in New York will start on Monday with more than 7,000 visitors that have paid around 2,000 per ticket. The last conference in 2017 boosted bitcoin prices to levels never seen.

Bitcoin tests near 1-month lows at 8,200

Bitcoin is extending Friday’s sell-off with the BTC/USD falling to trade below the 8,300. Currently, the pair is testing the 50-day moving average at 8,270. The unit is focused on its lowest level since March 19 at 8,200.

Since the 10,000 rejection on may 5, Bitcoin has lost over 16% to the current 8,270. On the month, BTC/USD is down 9,4%, while it is almost 40% negative so far on 2018.

If BTC/USD breaks below 8,200, it will face supports at 7,845 first, and then 7,500. Finally, the dynamic support line waiting for the crypto at 7,240.

To the upside, the pair needs to recover the 9,020 area and close above the dynamic line mentioned before, now resistance. After that, next resistances will be at the 9,500. Then, the 9,770.00 static line and the 9,900.00 area. The 10,000 is a dream for now.

Ethereum opened with losses; testing the 710.00 level

ETH/USD Daily Chart - 14-05-18

Ethereum managed to bounce back at 637.10 on Saturday after declining hard on Friday. Saturday candlestick was a green hammer, and then Sunday was a confirmation candle that took the price above the 70.00 level.

Now on Monday, the ETH/USD is trading 4.3% down on the day at the 700.00 level. The second largest cryptocurrency is fighting for the 710.00 level and just above the 200-day moving average at 673.00.

To the downside, if the pair falls below the 710.00 level, it will find next supports at 665.00, 640.00, and 600.00. Then, 557.00 is the most critical.

To the upside, the pair needs to close above Tuesday high of 776.00 to confirm more bullish appetite. Then, the unit will see resistances at the 800.00 area, at 830.00, 900.00 and then the 1,000 significant mark.

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