Cryptocurrencies are extending declines, with Bitcoin settling below $29,000. The downward pressure was fueled by the hacking of Curve Finance, a trading and lending De-Fi platform. The losses of its users amount to more than $40 million. In addition, some 340 ETH were stolen following the attack on LeetSwap. The attacks have also fueled speculation and market uncertainty as the US cryptocurrency market continues to come under regulatory pressure from the SEC.
Former CFTC officials have pointed out that companies operating in compliance with SEC regulations cannot offer brokerage and lending services at the same time. The attack on Curve Finance may increase regulatory pressure in the States. Shares of cryptocurrency exchange Coinbase (COIN.US), among others, are losing today. Additionally, the recent Fed rate hike along with strong data from the economy has strengthened the US dollar putting additional pressure on Bitcoin. Potentially, news of increased security measures or recovery of stolen funds could improve market sentiment. Altcoins including Litecoin and Ethereum are also losing heavily.
Bitcoin's price on the D1 interval is at a key support, i.e. the 23.6 Fibonacci retracement of the April 10, 2023 upward wave. If the bulls fail to hold this level, we may witness a test of $27,000 where we see the 38.2 Fibo retracement and the vicinity of the SMA200 - the main support in the entire upward movement that has lasted since December 2022 (red line).
Source: xStation5
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