- Bitcoin under pressure, down 3.4 percent in 24 hours
- Another exchange disappears with user funds
Coinroom clients are counting losses after the exchange abruptly closed. Some clients had more than 2 BTCs in their accounts. Meanwhile, Bitcoin is stabilizing, down 3.4 percent in the last day.
Bitcoin Price Analysis
Fundamentals
Losing funds, either through theft of lost private keys, is a traumatic experience. Should a regulated exchange suffer a hack and funds stolen, there is always a legal route for a possible recompense.
However, in extreme cases like QuadrigaCX, where the founder and the only person with access to the private keys of the ramp’s cold wallet pass on, it is indeed a challenge for the regulator. It is even worse for clients.
The worst case scenario is when funds are lost without trace, compounding the client’s misery. But, in the case of Coinroom, a Polish cryptocurrency exchange, users were notified and asked to withdraw their funds within 24 hours. That is because such a flash request was part of their terms and conditions.
Reports in Poland indicate that even those who followed through and withdrew funds ended up receiving part of it. From the look of things, there are those who will likely lose their hard-earned monies. According to Cointelegraph, some clients had up-to 2 BTCs in their accounts.
Consequently, aggrieved clients are seeking legal recourse. Already, officials are on the ground, trying to piece together evidence and the trace other victims.
Candlestick Arrangement
After two days of deep retracements, Bitcoin (BTC) is stabilizing. The coin is down 3.4 and 10.6 percent in the last day and week respectively, at the time of writing. Although it is a temporary reprieve, bears are nonetheless, in charge.
From candlestick arrangements, the path of least resistance is down. Note that BTC prices are below the middle Bollinger Band (BB). In a bear breakout pattern, sellers could heap pressure on bulls forcing liquidation. In line with previous BTC/USD trade plans, any break below $7,500 could see BTC crumble to $5,600, erasing gains of May in a typical retest.
Conversely, if bulls flow back, forcing prices above $8,000 and $8,500, then there will be an opportunity for traders to buy the dips with targets at $10,000.
Technical Indicators
In the short-term, June 3rd and 4th candlesticks will anchor this trade plan. Both are extensive with above-average trading volumes. A satisfactory reversal will signal bulls. On the flip side, drop below $7,500 will likely usher a selloff as aforementioned.
Chart courtesy of Trading View. Image Courtesy of Shutterstock