Bitcoin rebounds after the Binance hack driven selloff as US-Iran deal hopes improve risk sentiment
Forexlive
<p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Bitcoin sold off sharply towards the end of last week following the news
of the Binance security breach, which reportedly resulted in approximately $6.3
billion being drained from multiple wallets. The hack, described as the largest
cryptocurrency heist in history, raised concerns about exchange security and
potential contagion across the broader crypto ecosystem.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Although Binance pledged to cover customer losses, the uncertainty
surrounding the stolen assets and the potential for further liquidations
weighed heavily on sentiment. Around $1.53 billion in leveraged positions were
liquidated over 24 hours, amplifying the initial selloff as forced liquidations
accelerated the downside.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">However, Bitcoin eventually rebounded as concerns surrounding the hack
gradually eased. Binance's commitment to cover customer losses helped contain
fears of broader contagion, while improving sentiment around US-Iran
negotiations provided additional support to the crypto market. Iran's proposal
to reopen the Strait of Hormuz within two days strengthened hopes for a
diplomatic breakthrough, reducing some of the geopolitical risk premium
weighing on markets, with oil prices erasing most of last week’s gains.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Nevertheless, the macro backdrop remains challenging, with inflation
risks, growth concerns, Fed rate hikes and geopolitical uncertainty continuing
to limit the upside. We will likely need a breakthrough in US-Iran negotiations
or dovish Fed comments to change the current bearish trend. A surprising red
sweep in US midterm elections could also support the cryptocurrency as markets
could reprice the expected fiscal restraint. A blue sweep, on the other hand, could
put further pressure on the crypto market if there’s no resolution to the Iran
war. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">BITCOIN TECHNICAL
ANALYSIS – DAILY TIMEFRAME</p><p></p><p>On the daily chart, we can
see that <a href="https://www.tradingview.com/symbols/BITCOIN/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">Bitcoin</a>is slowly rebounding after
the selloff triggered by the Binance security breach. We have a downward
trendline now defining the bearish structure. If the price gets there, we can
expect the sellers to lean on the trendline, with a defined risk above it, to
position for a drop into the 75,000 level. The buyers, on the other hand, will
want to see the price breaking higher to pile in for a rally into the 98,000
level next.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">BITCOIN TECHNICAL
ANALYSIS – 4 HOUR TIMEFRAME</p><p></p><p>On the 4 hour chart, there’s
not much we can glean from this timeframe as the sellers will have a better
risk to reward setup around the downward trendline, while the buyers will need
to wait for either a break above the trendline or a drop into the 75,000 level.</p><p>BITCOIN TECHNICAL
ANALYSIS – 1 HOUR TIMEFRAME</p><p></p><p>On the 1 hour chart, we
have a minor upward trendline defining the
of the Binance security breach, which reportedly resulted in approximately $6.3
billion being drained from multiple wallets. The hack, described as the largest
cryptocurrency heist in history, raised concerns about exchange security and
potential contagion across the broader crypto ecosystem.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Although Binance pledged to cover customer losses, the uncertainty
surrounding the stolen assets and the potential for further liquidations
weighed heavily on sentiment. Around $1.53 billion in leveraged positions were
liquidated over 24 hours, amplifying the initial selloff as forced liquidations
accelerated the downside.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">However, Bitcoin eventually rebounded as concerns surrounding the hack
gradually eased. Binance's commitment to cover customer losses helped contain
fears of broader contagion, while improving sentiment around US-Iran
negotiations provided additional support to the crypto market. Iran's proposal
to reopen the Strait of Hormuz within two days strengthened hopes for a
diplomatic breakthrough, reducing some of the geopolitical risk premium
weighing on markets, with oil prices erasing most of last week’s gains.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Nevertheless, the macro backdrop remains challenging, with inflation
risks, growth concerns, Fed rate hikes and geopolitical uncertainty continuing
to limit the upside. We will likely need a breakthrough in US-Iran negotiations
or dovish Fed comments to change the current bearish trend. A surprising red
sweep in US midterm elections could also support the cryptocurrency as markets
could reprice the expected fiscal restraint. A blue sweep, on the other hand, could
put further pressure on the crypto market if there’s no resolution to the Iran
war. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">BITCOIN TECHNICAL
ANALYSIS – DAILY TIMEFRAME</p><p></p><p>On the daily chart, we can
see that <a href="https://www.tradingview.com/symbols/BITCOIN/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">Bitcoin</a>is slowly rebounding after
the selloff triggered by the Binance security breach. We have a downward
trendline now defining the bearish structure. If the price gets there, we can
expect the sellers to lean on the trendline, with a defined risk above it, to
position for a drop into the 75,000 level. The buyers, on the other hand, will
want to see the price breaking higher to pile in for a rally into the 98,000
level next.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">BITCOIN TECHNICAL
ANALYSIS – 4 HOUR TIMEFRAME</p><p></p><p>On the 4 hour chart, there’s
not much we can glean from this timeframe as the sellers will have a better
risk to reward setup around the downward trendline, while the buyers will need
to wait for either a break above the trendline or a drop into the 75,000 level.</p><p>BITCOIN TECHNICAL
ANALYSIS – 1 HOUR TIMEFRAME</p><p></p><p>On the 1 hour chart, we
have a minor upward trendline defining the
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