Bitcoin price changed little above $ 44,000 despite Japan’s liquid exchange hack

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Bitcoin held its own above $ 44,000 even after Japan’s Liquid exchange said a hacker took off with millions of dollars in crypto during trading hours in Asia.

The world’s largest cryptocurrency by market cap is down 2% the same day after hitting a 24-hour high of around $ 45,986, according to data from CoinDesk. At the time of going to press, bitcoin was changing hands for around $ 44,400.

Bitcoin fell sharply below the 200-day moving average, invalidating an earlier breakout seen on August 13.

“We still have support at $ 44,000 and $ 42,000, which is the limit for short-term momentum,” Jon de Wet, CIO of digital asset firm Zerocap told CoinDesk via Telegram.

The company says safe-haven flows are being reinforced by instability in Afghanistan triggered by the exit of the US military as well as concerns over the delta variant of COVID-19.

While headwinds in China, with the economic downturn and the crackdown on the tech sector, are also impacting crypto markets, the Liquid hack has so far had little impact. This is a sign of a lingering bullish sentiment, the firm noted.

“A daily break below $ 42,000 would give bears some confidence, but overall we think [the] the price will stay above this level over the coming week, ”De Wet said.

Indicators on the chain indicate that bitcoin is holding above this level, at least in the short term, as the so-called smart money flows out of exchanges continue to reign supreme, according to data from Glassnode.

Typically, “smart money” dominates exchange flows, according to Zerocap. If bitcoin leaves trading, it may indicate an intention to hold. Conversely, when bitcoin moves on exchanges, it can indicate an intention to sell.

“Ethereum even more so, with currency balances hitting an all-time low this week,” de Wet said. “The leverage effect is not excessive in this market at the moment, everything is very favorable for a dynamic week to come, despite the macroeconomic landscape.”

Other notable cryptocurrencies in the top 20 by market cap were shuffled on a 24 hour basis with cardano, terra, and internet computer showing the highest gains while uniswap, polygon, and chain link were deep in the red.

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