In a press release on April 25 ’19, Bitfinex was alleged to have defrauded New York crypto-based investors in the sum of $850 million dollars and went further to cover it up via using the stablecoin Tether. This news report resulted in a sharp price decline creating panic selling in the crypto markets. Come along as we look at this and other interesting fundamental and technical patterns in the cryptocurrency market.
BTCUSD (Bitcoin) Technical and Fundamentals
Cryptocurrency exchange Bitfinex has moved to quash claims made by New York Attorney General (NYAG) about the company’s financial condition. In a letter emailed to its users on the 27th of April, the exchange affirmed that the recent allegations by the Attorney General about the company’s insolvency are deceptive and filled with inaccuracies.
The letter which was signed by Jean Louis van der Velde, the company’s CEO, specifies that the allegations and records brought against the exchange do not constitute a civil or criminal complaint.
“In particular, we want to assure you that the allegation that we have ‘lost’ $850 million is categorically false.” the letter reads.
According to the exchange, the said funds are, in fact, seized and safeguarded in several jurisdictions, including the United Kingdom, Portugal, Poland, the and the United States.
The exchange also moved to assure users that it is actively working to cause those funds to be released, noting that they will vigorously challenge the false assertions uttered by the New York Attorney General’s office. The exchange is convinced that it can make convincing arguments to back up its position.
Shareholders of Bitfinex have reiterated their confidence in the company and are reportedly not the least perturbed by the NYAG’s allegations against the exchange. They are said to believe that in just a matter of weeks, the funds will be unfrozen.
BTCUSD: Daily Chart
The bulls continue to hold their ground even in the face of negative news that hit Bitfinex and Tether. This negative news coincides with a bearish divergence pattern triggered on 25 April ’19, unfortunately, the bears could not continue the drive as the intraday time frames which we’ll later come to see signals a recoil of the bearish volatility.
BTCUSD: 4-HR Chart
Looking at the 4hour chart above, the price of Bitcoin soared by 12.53% after a bullish accumulation pattern was signaled on 15 April ’19 19:00, setting up support at 4977.0. The bears took over the market on 23 April ’19 15:00 after a price breakdown of triple bullish accumulation support sending the price of Bitcoin tumbling by 8.7%. The bulls have been resilient, as they forced the price of Bitcoin to spring back up after making support of 5055.0, and subsequently breaking out of bearish accumulation resistance on 27 April ’19 11:00.BTCUSD: 4-HR Chart.
BTCUSD: 1-HR Chart
The bearish regular divergence pattern signaled on 24 April ’19 02:00 in combination with the breakdown of bullish accumulation on the 4hour chart, strengthened the bearish sentiment. On 25 April ’19 16:00, a breakdown of bullish accumulation was triggered and sent the pair crashing down by 6.65% from the signal point, after which the price recoils in the opposite bullish direction.
Critical Resistance Levels of Bitcoin (BTC)
5659.0, 5558.0, 5525.0
Critical Support Levels of Bitcoin (BTC)
3939.0, 4842.2, 4960.2
4977.0, 5255.0, 5301.0
XRPUSD (Ripple) Technical and Fundamentals
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