Bitcoin price analysis: BTC/USD drops to $6,600; Binance and Kraken suffered from system failures
|- Two large exchanges scared traders with technical issues.
- Bitcoin bearish trend resumed after a brief correction.
We are back to square one with Bitcoin trading at $6,600, down 12% from the recent peak reached on Tuesday, April 3. Bullish traders capitulated at critical technical levels without fresh fundamental drivers.
To add insult to the injury, two large cryptocurrency exchanges experienced system failures, which triggered speculations about possible hack attacks.
First, Binance traders experienced problems with login. The issues turned out to be widespread with lots of angry messages in social media, chats, and forums.
"We missed a bug that went into prod today, causing DB load issues immediately. It’s being fixed, will take 30-60 minutes. No need to repeatedly login. Just wait until we fix it. Thank you for your understanding and support!" Changpeng Zhao, Binance CEO tweeted.
The company denied the hack attack rumors and returned to the normal operations, but the harm was done.
U.S.-based cryptocurrency exchange Kraken suffered issues with funding accounts late on Wednesday, and there is no update where the situation has been solved yet.
"We are currently experiencing issues across all funding methods. Please expect crypto and fiat deposits to be delayed until we identify and resolve the issue," the official statement reads.
Bitcoin price technical picture
BTC is trading at $6,600 handle with the nest support at $6,442 (April 1 low). Once it is cleared, the price will extend the downside towards $6.000. The upside is limited by $6,900 - $7,000 area with the strong resistance created by the upper line of Andrew's Pitchfork.
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