When a broker is questioned, it is not good news for digital currencies
Eamonn was all over a story in the WSJ that iFinex (operators of the Bitfinex cryptocurrency exchange and owns Tether) has been accused of covering up missing funds. That helped to send the digital currencies lower (including Bitcoin and Tether).
When the brokers/exchanges start to play games, it is not good for the digital currencies. The market remain relatively unregulated. Any foul play, will lead to more snooping and rules/regulations. Havnig lived through the regulation of the forex market in the US, they can make business much more expensive, choking off the market for traders in the process.
The price of Bitcoin on Coinbasd is currently down -$330 at $5164. The high reached $5500 The low extended to $4963. The low did stall just below the low from April 15 at $4945.54. The low from April 12 reached $4901.99. A move below that area would be more bearish.
On the move lower, the price cracked below its 100 and 200 hour MAs (currently at $5416 and $5349 respectively). That is now risk for shorts. Stay below keeps the bias tilted more to the downside.
The price is currently trading between the 100 and 200 hour MAs above at $5349-$5416, and the recent swing lows below at $4901-$4945. At some point there will be another shove. Those levels will help to determine the tilt.
Right now, with the price cracking below the 100 and 200 hour MA, I have to think the sellers are a little more in control, with work to do on the downside.
