Bitcoin Price Made Unexpected Move Above $7,500 Despite Upbit Hack, Downtrend Over?
Following the Upbit hack, bitcoin price made an unexpected sharp move in the opposite direction, jumping by $500 after an initial $200 drop, which lead to some voices that the crypto downtrend has come to an end.
On November 27, 342,000 ETH (approximately $50 mln) were hacked from Upbit, one of the largest South Korea cryptocurrency exchanges. After an initial drop by $200 in the first two hours, the price of bitcoin soon moved towards the opposite direction, showing an impressive gain of more than 5% for the day with an intraday high around $7,300.
News like major crypto exchange hack was supposed to lead the crypto market into another round of red chaos after the month-long dipping, while the unexpected turnaround seems to indicate that the crypto market is less influenced by the bearish news this time.
Regarding this, Jiang Zhuo’er, CEO of crypto mining pool BTC.top, posted an analysis suggesting that the downtrend might have been over.
According to his Weibo (Twitter equivalent in China) poll results on market sentiment following the three latest U-turns, the percentage of people who believe that BTC has bottomed to those who think the price will continue dropping has been increasing, that means, more and more Chinese crypto investors are turning into long forces from short-sellers.
Jiang believes that when the market sentiment is immune to the bearish news, and the price moves in the opposite direction, it may be a turning point.
Meanwhile, crypto trader “Daniel” tweeted that the market is driven by traders and anyone that thinks any of this is controlled by news is losing money.
I was waiting for $6850 2 days ago, price was drawn to it and we get a straight up 5% bounce in 1 hour. Honestly this market is driven by traders, and anyone that thinks any of this is controlled by news is losing money. Good trade after good trade at the moment. #Bitcoin pic.twitter.com/1pJcvXGbVZ
— Daniel (@ChartChampions) November 27, 2019
As of press time, bitcoin is hovering around $7,500, gaining 4.95% in the past 24 hours.