The BitMEX exchange made a colossal mistake on November 1 by sending an e-mail to thousands of customers — but forgetting to do so in blind carbon copy. Therefore, the complete list of customer email addresses remained visible to all recipients.
This especially negligent mistake has raised concerns about the ability of the exchange to handle customer data. The mistake leaves all customer e-mails susceptible to attacks from hackers. If they do not have two-factor authentication enabled, this could be a very costly mistake.
Until now, BitMEX has never been hacked, so it still possesses the benefit of the doubt. However, this was a big step in the wrong direction — which could prove to be costly.
In an unexpected turn of events, the Bitcoin price pumped after this negative news. This, however, was most likely as a result of technical factors — rather than a response to the news.
Cryptocurrency trader @trajanmex illustrated how the Bitcoin price pumped at the time the negative news was announced.
Bitcoin pumps on news of emails getting leaked. pic.twitter.com/4nufALCgOv
— Trajan (@trajanmex) November 1, 2019
This does not immediately make sense since the negative news is not supposed to positively affect prices. Let’s take a closer look at the Bitcoin price movement and see why this might have occurred.
Bitcoin’s Short-Term Channel
Looking at the hourly movement, we can see that the Bitcoin price is trading inside a horizontal channel.
Additionally, it previously broke out from a descending triangle. The time of the news is outlined by the yellow arrow.
Therefore, the movement could have been a normal response after the validation of the resistance line of the triangle.
Also, there is significant bullish divergence developing in both the MACD and the RSI. Since this divergence is present very close to the support line, it gains more significance.
Therefore, while the news was negative, this might have been an increase caused by technical factors.
Since the increase was likely caused by the divergence/support, it should be fair to say that the negative BitMEX news did not affect the Bitcoin price at all.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
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