The trading this morning/early afternoon was pretty wild. Everything was moving into consolidation per usual, but then at 10:15 CST, Bitcoin dumped. At 11:00 CST, Bitcoin was trading at 10,041. And then at 11:20, Bitcoin got as low as 9,400. If you’ve traded regular equities (stocks) or futures before, a drop like this can be pretty normal. The technicals of these kinds of drops are often telling. For me, this is a silly discount and I’ve loaded up a good amount at this sub $10,000 level.

The chart

1. I’ve drawn a Fibonacci retracement from the swing low back on February 5th to this current ranges swing high made on February 20th. The price action that was traded today touched the .382 Fibonacci level of this swing and even traded below, but it was promptly bought up again.

2. The current swing range is more telling. Price fell through the .618 and then almost retraced 100% of the swing. However, at the time of writing this article (3:23 PM CST), there has been significant support for Bitcoin at the .786 Fibonacci level, which is just $200 below the $10,000 value area.

Binance Hack? Not hacked?

There was some trouble brewing with one of the world’s largest cryptocurrency exchanges, Binance. I first heard about some issues with Binance around 8 or 9 AM CST this morning; I got some texts and calls from clients who said their altcoins were sold. Sure enough, they were not alone.

This is essentially what happened:

  1. Binance itself was not hackedThe problem and issues were related to their API and people who use auto-traders/bots (some mixed stories on this, unable to confirm). I use my own bot and I also use Binance as one of the exchanges I use and I did not have any issues.
  2. Multiple trades pumped up, specifically VIA coin.
  3. Alts sold off into Bitcoin.

Binance did address the issue quickly and mentioned that the exchange is safe has not been compromised. They also said that the trades in question have been isolated and that they will be reversed. They also stopped all withdrawals immediately. Ultimately, the issues seem to be related to phishing.  Personally, I’m happy with the way they addressed this. The CEO even took to Twitter:

How does this effect cryptos?

This kind of activity is a boon and has been met with a large amount of fear. Moves like this typically form what is a called a ‘V’ shaped bottom: swift move down with a swift move back up. We can and should expect Bitcoin to return to its previous trading range.