Over the weekend, hackers stole nearly $ 150 million in user funds from a number of hot wallets on the KuCoin exchange. Previous cases of piracy usually had a negative impact on cryptocurrency prices, but as the news broke, the price of Bitcoin (BTC) and major digital currencies didn’t move much.
In a recent interview with the Human Rights Foundation, Jack Dorsey, CEO of Square, said that “security can never be improved,” and that staying one step ahead of attackers is a constant concern.
Dorsey added that Bitcoin and the blockchain are the future where all content will forever be “on every node connected to it”.
In other news, recent data from CryptoCompare shows that trading volume for products traded on the Cryptocurrency Exchange (ETP) has fallen from around $ 186.5 million per day in mid-August to an average of $ 48 million in mid-September.
Much of the ETP’s volume comes from Grayscale products, and the data suggests that sales of those products fell to around $ 40 million a day in mid-September. This suggests that investors stopped buying while waiting for cryptocurrency markets to resume their uptrend.
Let’s analyze the charts of the top 5 digital currencies that could trigger the trend move this week.
Bitcoin / USD
Bitcoin bounced back from its uptrend line on September 24th and has since nearly consolidated the resistance at $ 10,800. This suggests that the bears are trying to stop the rally of relief at current levels, but the bulls did not allow the price to drop below $ 10500.
Usually, tight consolidation near resistance indicates that the short-term bulls are in no rush to close their positions as they expect higher levels. A closing (UTC) price above $ 10800 may cause a move to $ 11,178, but the bears are expected to defend that level.
The flat moving averages and the RSI indicator just below the midpoint indicate a balance between supply and demand.
A break of $ 11,178 could tip the feature in favor of the bulls and trigger a move to $ 12,460. On the contrary, if the BTC / USD pair drops below $ 9,835, the bears are in control.
The 4 hour chart shows that the pair formed a flag pattern after rising from the uptrend line. Breaking this setting would increase the possibility of a bullish move into the upper resistance at $ 11,178.
The RSI supports near 50 and the moving averages have completed a bullish cross indicating a slight advantage for the bulls.
However, the bulls’ failure to push the price above $ 10,824 should result in profit taking and the bears will then seek to bring the pair below $ 10,558. If they are successful, there is a risk that the uptrend will collapse.
DOT / USD
Polkadot (DOT) formed a large symmetrical triangle pattern, indicating indecision between bulls and bears. This uncertainty will dissipate when the price breaks above or below the triangle.
If the bears drop the DOT / USD pair and hold it below the triangle support line, it means that the sellers have overwhelmed the buyers. The bulls will attempt to defend the $ 3.50 support, but a break below that could bring the price down to $ 2.00.
The 20-day exponential moving average ($ 4.59) is starting to weaken and the RSI indicator has fallen into negative territory, suggesting that the bears are trying to get the upper hand.
This negative view will be negated if the pair bounces off current levels and breaks the resistance line of the triangle. The next target to look up is at $ 5.50 and $ 6.50 above.
The bearish falling moving averages and the negative RSI show that the short-term advantage lies with the bears. The bears now need to lower the price into the triangle to consolidate their position.
However, if the pair rebounds sharply from the triangle’s support line, it would indicate that the bulls are aggressively buying when that support breaks. If buyers manage to push the price above the triangle, there could be a quick switch to $ 5.50 on the cards.
If, contrary to these assumptions, the price does not move much from the triangle, it means that neither side has been able to prove their dominance. In such a case, the couple can stay in a certain area for a few days.