Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24
Stock & Crypto Markets Going into December 2024 - 2nd Dec 24
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Bitcoin in Trading Range

Currencies / Bitcoin Aug 02, 2017 - 06:24 AM GMT

By: Mike_McAra

Currencies

The BTC-e debacle continues with the U.S. government seizing the exchange’s website. Now, BTC-e has its data center seized by the FBI. On CoinDesk, we read:

(…) in a statement on the Bitcoin Talk forum (that was tweeted out via its official account), representatives for the exchange issued new comments, including a pledge to return users' funds.


The statement read:

"For all those who buried us, I will remind you that the service has always worked on trust and we are ready to answer for it. The funds will be returned to everyone!"

The message also confirmed that BTC-e's data center had been raided by the U.S. Federal Bureau of Investigation on July 25, during which time the agency "seized all equipment, the servers contained databases and purses of our service."

Notably, the statement pushed back on claims that Vinnik was an employee of BTC-e, with the operators stating: "officially declare – Alexander was never the head or employee of our service." In announcing the charges against Vinnik, the US Department of Justice had asserted that he was the "operator" of BTC-e.

The BTC-e statement went on to say that more information would be released in the next two weeks, including an account of "how much money fell into the hands of the FBI and what amount of funds is available for return."

It is unclear at this time what will actually happen with the funds locked into BTC-e accounts. BTC-e has already been fined $110 million and we don’t yet know whether the funds will be used as collateral or if any part of them will be released to customers. The way things look now, it seems unlikely for BTC-e to spring back from this. We wouldn’t expect to see any definitive statements on the issue of funds from the U.S. government any time soon. Bitcoin’s reaction to the BTC-e news has been quite interesting.

For now, let’s focus on the charts.

On BitStamp, we see that the move down from the $2,900 level was followed by some appreciation and this makes the situation look more bullish. Recall our recent comments:

The rebound has continued so far (...) and our stop-loss was taken out earlier today. At the moment of writing these words, Bitcoin is not only above the 38.2% retracement ($2,182) but also above the 23.6% one ($2,487). This is a bullish development, at least at first sight, and the volume has been relatively strong so far. Not explosive, perhaps, but strong enough to make this move a plausible beginning of yet another move up.

What we wrote previously remains up to date. Bitcoin is still above the 23.6% retracement level. So far, the recent surge has bullish indications as Bitcoin tested the 50% retracement and very quickly shot up to the upside. We’re now quite close to the all-time high and the way Bitcoin is traded at this level (if it is reached) might be very important for the currency.

Even though BTC-e is a bad story for Bitcoin, the currency hasn’t really budged and we still see Bitcoin just above the 23.6% retracement level. This shows that the currency has been holding up and there has been no change in the short-term outlook based on the price/volume action only.

The current action comes in the wake of the recent test of the 23.6% retracement level ($2,487). The fact that we saw such a test and a move below this level was denied, and we haven’t seen a retest so far,  suggests that the current situation is tilting to bullish.

On the long-term BTC-e chart we still don’t see a quote from the exchange, which reflects its recent troubles. Our recent comments:

Now, we see that the situation is very much the same as far as the price is concerned. It is, however, very different when we take into the BTC-e disaster. The idea that a well-known exchange most likely goes underwater should have resulted in a visible downswing. At least this is what we saw following the Mt. Gox debacle. Granted, BTC-e is nowhere near as systemically important as Mt. Gox was but we should have seen at least some reaction. We have seen no visible slide. Actually, at the moment of writing, Bitcoin is up for the day. This might mean that there is more buying power in the market and it is a bullish indication. We would prefer to wait an additional day for the effects of the news to transpire but right now, we view the situation as a lot more bullish than only a couple of days ago.

Even though we don’t see quotes from BTC-e, quotes from other exchanges show that Bitcoin is still above the 23.6% retracement and it has actually gone up recently. At the moment of writing these words (before 12:00p.m. ET), we see Bitcoin in the middle of the range between the 23.6% retracement from the downside and the all-time high from the upside. The situation still has a bullish to it but, in our opinion, it is not enough to go long just now as not much movement might flip the situation around completely.

If you have enjoyed the above analysis and would like to receive free follow-ups, we encourage you to sign up for our daily newsletter – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up now.

Regards,

Mike McAra

Bitcoin Trading Strategist
Bitcoin Trading Alerts at SunshineProfits.com

Disclaimer

All essays, research and information found above represent analyses and opinions of Mike McAra and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Mike McAra and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. McAra is not a Registered Securities Advisor. By reading Mike McAra’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Mike McAra, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Mike McAra Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in