Analysis May 08 blockchain-bitcoin

Cointelegraph.com

Hackers have breached the security cover of one of the largest cryptocurrency exchanges, Binance and stole 7,000 bitcoins from the hot wallet of the exchange. Binance has said that it will provide for the loss with its Secure Asset Fund for Users. However, this shows that even the best exchanges, with top-notch security, can also be vulnerable at times.

Hackers and scamsters have been increasingly attracted to cryptocurrencies after the previous bull market. In France, the number of inquiries related to crypto-related scams has increased from 18 in 2016 to over 2,600 in 2018. During the same period, forex and binary options saw a decrease in fraudulent offers.

Misuse of raised funds is also a serious issue. The United States Federal Trade Commission has brought a lawsuit against the authorized signatory and officer of startup iBackPack for misusing funds raised during its crowdfunding campaigns to buy bitcoins.

Investors should not get carried away with lofty promises to get rich overnight and should make an informed decision before investing in any new project.

BTC/USD
Bitcoin (BTC) has continued its uptrend. It broke above the overhead resistance of $5,900 on May 7 but could not close above it. However, we are not seeing any profit booking or aggressive shorting at this critical resistance. Both the moving averages are trending up and the RSI is in the overbought zone. This increases the probability of a rally to $6,480.54. Traders can trail their stops on the remaining long positions to $5,500. If the price sustains above $6,000, the stops can further be tightened to $5,800.

BTC/USD
The first sign of weakness will be if the BTC/USD pair turns down from current levels and breaks below the 20-day EMA. Below this support, the next major level to watch is $4,914.11. If this level holds, the pair might consolidate between $4,914.11 and $5,900 for a few days. The trend will turn negative if the price sinks below the 50-day SMA and the critical support at $4,914.11.

ETH/USD
Ethereum (ETH) triggered our buy proposed at $192 and rallied to an intraday high of $198.62 on May 7. However, the rally could not scale the psychological resistance of $200 and it quickly gave up all its gains. It corrected to the 20-day EMA, which is providing some support. The 20-day EMA has started to slope up and the RSI is in the positive zone. This suggests that the bulls have the advantage in the short term.

ETH/USD
If the ETH/USD pair breaks out of $200, it can move up to $225 and above it to $256. Traders can trail the stops to $165 if the pair sustains above $200 for a day. The digital currency will weaken if the bears sink the price below the breakout levels of $167.20 and the 50-day SMA. For now, the stops can be retained at $146.