Tanya Abrosimova
Independent Analyst
OKEx, one of the world's largest cryptocurrency exchanges, unlocked the withdrawal functionality ahead of the scheduled time. According to the official blog information, users' funds have been unlocked at 8:00 (UTC) on November 26, 2020.
The development led to a massive BTC outflow from the exchange. As on-chain data provider CryptoQuant reports, users took away 2,822 BTC worth of over $50 million, which is the most significant one-time withdrawal amount in the company's history.
The cryptocurrency exchange platform users were deprived of access to their funds for over a month as one of the company's top executives and a holder of private keys was under investigation.
Read the full story of what happened with OKEx here.
OKEx withdrawals unleashed market volatility
As FXStreet previously reported, the event might have resulted in a spike in market volatility. Traders started taking out their coins and cashing them out to book profits. Thus, Bitcoin gained over 30% in less than a month, meaning that some users might have wanted to benefit from the rally.
While the Bitcoin's sell-off started before the platform users got a chance to get their coins back, the OKEx move might have increased the bearish pressure on the cryptocurrency market.
Bitcoin drops below $17,000
The pioneer digital asset dropped below $17,000 and retested $16,200, losing over 12% of its value from the recent peak of $19,500. At the time of writing, BTC/USD is changing hands at $17,200, with the first strong resistance located on the approach to $18,000.
Bitcoin's In/Out of the Money Around Price" (IOMAP)
IntoTheBlock's "In/Out of the Money Around Price" (IOMAP) model reveals that nearly 350,000 Bitcoin addresses previously purchased about 250,000 BTC between $17,600 and $18,000. Once this area is cleared, the recovery may be extended towards $18,500. However, the road to the upside is now cluttered with barriers that go all the way up to $19,000. A rejection at $18,000 may push the price back to $17,000. This support is followed by the intraday low of $16,200.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ethereum continues hinting at rally following reduced long liquidations
Ethereum has continued showing signs of a potential rally on Tuesday as most coins in the crypto market are also posting gains. This comes amid speculation of a potential decline following FTX ETH sales and normalizing ETH risk reversals.
HBAR price jumps 75% as BlackRock tokenizes Money Market Fund on Hedera
Archax, Ownera and The HBAR Foundation have enabled the first tokenization of BlackRock’s money market fund (MMF) on Hedera. Last year Hedera Council member abrdn’s successfully tokenized its MMFs on Hedera.
Bitcoin price holds above $66K as Morgan Stanley files prospectus to add BTC ETF exposure in two of its funds
Bitcoin (BTC) price remains range-bound, holding above the $63,000 level, while its upside is capped below $68,000, going against or delaying the assumption that the fourth halving would be a 'sell-the-news' outcome.
Crypto community reacts as BRICS considers launching stablecoin for international trade settlement
BRICS is intensifying efforts to reduce reliance on the US dollar after plans for a stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?