The Dark Cloud Over Crypto: Hacking Horror
The crypto world had a Sunday to forget when reports surfaced about the hacking of a small South Korean exchange, Coinrail. While the mainstream media rallied behind this headline, traders took it to heart. With only $2.65 million in 24-hour volume at Coinrail, one has to wonder if the panic was overblown. The total crypto market cap saw a jaw-dropping $42 billion vaporized over the weekend. Talk about a ‘knee-jerk’ reaction!
Weak Hands vs. Strong Hands: The Age-Old Struggle
In periods of plummeting prices, weak hands—those just gripping onto their coins for dear life—often scramble to sell off positions. Meanwhile, the more seasoned investors—let’s call them the ‘strong hands’—swoon at the lower prices, buying up assets that the weak hands are dropping. Not a bad strategy if you can withstand the carnage. So the burning question remains: when’s the right time to buy? Let’s wade into the charts.
Charting the Finances: The BTC/USD Saga
Bitcoin’s bounce that began May 29 fizzled out like a flat soda, failing to break free from the 20-day EMA. When BTC dropped below $7,100, long positions were liquidated faster than you can say ‘bear market.’ What’s the next stop for Bitcoin? Some predict a nose dive toward $6,075, while the RSI has been flashing signs of an oversold asset, hinting that a sharp rebound could just be around the corner.
Ether, XRP, and the Bearish Downward Spiral
Ethereum’s rollercoaster ride reflected much of Bitcoin’s drama, slipping back under the resistance line on June 10 and plummeting towards minor supports. If Ethereum can’t hold the $492.5 mark, we may be staring down the barrel of a $400 price point. As for Ripple, breaking below its critical support at $0.56270 could leave it chasing down a lower support at $0.24. Traders, hold onto your butts—it’s looking rough out there!
Waiting for the Green Light: What Should Traders Do?
The overarching theme seems to be: patience is key. With many cryptocurrencies facing bearish pressure, it’s often best to wait for a clear buying signal before diving back into the fray. Look for a new buy setup to form, rather than trying to catch a falling knife, or you might just end up being part of the collateral damage.
