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Trader: Bitcoin in a Precarious Position Following OKEx-Induced Selloff

Bitcoin 2020/10/16 18:00 by Cole Petersen
  • Bitcoin’s price action has been incredibly lackluster throughout the past few days and weeks
  • Bulls and bears have both reached an impasse, which comes despite there being a flurry of both bullish and bearish news
  • Throughout the past few weeks, bulls have been able to dodge any sustained declines resulting from news surrounding the CFTC’s charges against the BitMEX co-founders as well as a $150m KuCoin hack
  • Bullish developments surrounding companies like Square buying BTC has helped negate the impacts of these bearish events
  • Another potentially impactful event that is now unfolding is the arrest of OKEx’s founder
  • The exchange has now frozen withdraws, leaving 200,000 Bitcoin in limbo

Bitcoin’s price was flashing some signs of strength throughout the past couple of days, which is now being suppressed by the news surrounding the arrest of OKEx’s founder in China.

Because he had to regularly conduct withdraw authorizations, him being in police custody has caused all of the crypto locked within the platform to be locked.

In total, over 200,000 Bitcoin sits on the platform, which accounts for over 1% of the total supply of the cryptocurrency.

BTC has yet to face any harsh decline due to this news, but its price is slowly drifting lower.

One analyst is now noting that he is waiting for this situation to get resolved before taking any positions on Bitcoin.

Bitcoin Sees Tempered Downtrend as Fears Regarding OKEx Mount

At the time of writing, Bitcoin is trading down just over 1% at its current price of $11,360. This is around the price at which it has been trading over the past few days and weeks.

Yesterday, however, bulls were beginning to retake control over the cryptocurrency when they pushed it up to highs of $11,600 just before the news regarding OKEx broke.

This instantly caused a selloff that sent it reeling down to $11,200.

Analyst: BTC in a Precarious Position Following OKEx-Induced Selloff

While speaking about Bitcoin’s present outlook, one analyst observed that Bitcoin is now in a somewhat precarious position as it continues struggling to gain any momentum.

He said that he is holding off on taking any positions until the situation is resolved.

“This is what led to BTC dumping over night, missed it, was sleeping. Last times we had FUD (bitmex CFTC, Trump COVID19), we slowly grinded back up. Not rushing a position, might wait for the situation to get resolved [at] OKEx, keep a passive eye until then.”

The coming few days should provide greater insight into how this situation will play out and what impact it may have on the aggregated crypto market.

Featured image from Unsplash.
BTCUSD pricing data from TradingView.

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