Bitcoin price ranging within a $155 zoneQuadrigaCX is bankruptTransactional volume low but set to increase as bull momentum pick up
A Canadian crypto exchange, QuadrigaCX, has filed for credit protection asking the court to assign Ernst & Young Inc to overlook proceedings. Nevertheless, their folding didn’t affect BTC prices which are finding support at $3,500. It is likely that BTC will edge higher over the weekend and retest $3,800.
Bitcoin Price Analysis
It is curtain falling for perhaps what was once the oldest cryptocurrency exchange focused primarily on the Canadian market. Claiming to be 100 percent Canadian with offices in downturn Vancouver, QuadrigaCX appealed to Canadians allowing them to buy and sell a limited number of coins including Bitcoin, Ether, Bitcoin Cash and most recently, Bitcoin Cash SV.
All the same, their trouble with liquidity did have the better of them, and after failing to secure a relationship with several banks, the exchange has now applied for Credit protection with the Canadian Imperial Bank of Commerce (CIBC)in Nova Scotia Supreme Court.
The application will give them an opportunity to “address the significant financial issues that have affected their ability to serve our customers.” In the meantime, they have requested the court to appoint a third party, Ernst & Young Inc, to oversee and monitor proceedings.
Like the rest of the market, Bitcoin is feeling the brunt. On numerous occasions in lower time frames, it has failed to build momentum and reverse losses of Jan 28. However, there are hints of bulls as prices are oscillating along the main support levels of around $3,500—data feed from BitFinex.
All in all, it is likely that the coin will close the week on the high. When it does—and there is confirmation of Jan 30 bulls, then we shall have a clear three-bar bull reversal pattern off our support line. However, because bulls have the upper hand and in line with previous BTC/USD trade plans, risk-off traders will only enter long positions once there are clean cuts above $3,800.
As reiterated before, the mark is Jan 14 tops and effectively our minor resistance level. Up-thrusts above $3,800 would give way for rallies towards $4,500 or Dec 2018 highs.
On the participation chart, price movements depend on how fast prices race above key resistance levels of $3,800 and $4,500. Marking these levels are two key bear bars—Jan 10 with 35k and Jan 20 with 20k. These volumes are above recent averages.
For the Morning Star pattern of Jan 28-30 to be confirmed, then we must see high participation volumes exceeding current averages of 10k but most importantly Jan 10 of 35k—ideally. Such a spike will see prices rally above $3,800 igniting longs aiming at $4,500.