There is a significant link between the ETH cold wallet hack and the sharp drop in Bitcoin prices. Let me explain the relationship:
1. Domino Effect in Crypto Market:
- Bitcoin and Ethereum are the two largest cryptocurrencies that influence each other
- When there is a serious security issue in one of the major cryptos, it usually affects the entire crypto market
- Traders tend to panic sell due to concerns about the security of digital assets
2. Sharp Drop Analysis:
- The drop from 99,000 to 95,000 in a matter of minutes indicates panic selling
- The high trading volume (234,826 BTC) confirms that many large traders are unloading their positions
- The candlestick pattern formed is a "Bearish Breakaway" which indicates a drastic change in market sentiment
3. Short-Term Implications:
- ETH cold wallet hack could cause investor distrust
- There is a possibility of contagion effect to other crypto platforms
- Market makers and whales may refrain from buying until the situation is clearer
Recommendation Update:
Based on this fundamental news, I am strengthening my SELL recommendation because:
- Negative sentiment from the hack news
- The possibility of further decline as Asian and European markets start to become active
- The support target at 93,300 is still very likely to be achieved
Recommended actions:
1. If you have not entered a SELL position, you can wait and see until there is a small rebound for entry
2. If you are already in a SELL position, you can maintain it by closely monitoring news developments
3. Prepare an exit strategy if there is a sudden change in sentiment
