Bitcoin Price Analysis: BTC Ranging, Blockstream Quick Fix
- Bitcoin Prices are steady but could rally above $3,600 in days ahead
- Blockstream’s Proof of Reserves could solve the exchange’s perennial problems
- Transaction volumes below average
It may be an exit scam or a tragedy, but the bottom line is that QuadrigaCX users stand to lose $190 million. It is unbearable, but that is the reality. All the same, deliberations are in progress. In the meantime, BTC bulls are rejecting lower lows and could print above $3,600 and $3,800 by close of the week.
Bitcoin Price Analysis
Headline news is that users and traders of Canadian exchange QuadrigaCX risk losing a whopping $190 million.
The reason for this unfortunate mishap and a possible multi-million loss is because the keeper manning the exchange’s cold wallet private keys, Gerry Cotton, died in a humanitarian visit in India where he mysteriously died after succumbing to Crohn’s disease at a tender age of 30. There has been conjecture about this with users not buying the exchange’s narrative. Many hold this is a well-orchestrated exit scam.
There is reason to believe that he may have obtained a fake death certificate enabling them to pull off this heist—where is the body? They quip. It is through such circumstances that Blockstream is introducing what they call a “solution to provide a best-practice standard Proof of Reserves for the industry” in Proof of Reserves.
In the meantime, BTC is stable and up 0.1 percent in the last day. The move is, to say the least, but will no doubt reveal the presence of buyer rejecting lower lows. Like in our previous BTC/USD analysis, we recommend patience and the before we load longs in the direction of Dec 17, 2018, bulls, prices must first expand above $3,800.
That’s a long way from spot rates oscillating at around $3,500—according to streams from BitFinex. All the same, aggressive, risk-off traders can trade once bull momentum drive BTC prices above Jan 28 bear bar as a three-bar-bull reversal pattern comes to life.
The mark is just above the recent congestion at $3,600. No doubt, such gains will light up the space drawing demand. If not and prices tumble below last week’s low, then BTC may as well retest $3,200 in the near term.
Jan 28 highs mark our minor resistance, and while the bar is bearish, it is backed by high transactional volumes—17k versus 10k. We continue to maintain that bears are in control at-least before there is a solid close above Jan 28 to Feb 5 draining congestion. Marking this break above Jan 28 highs or $3,600 should be high volumes above current averages—10k and above 17k of Jan 28.
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