Bitcoin (BTC) managed to trade above $77,000 on Friday following a turbulent period marked by significant market volatility. The cryptocurrency held its ground after dipping to $76,320, a decline driven by the revelation of a complex $6.3 billion hack targeting Binance, the world's largest cryptocurrency exchange. This security incident coincided with a sharp sell-off in US technology stocks, compounding pressure on digital assets as investors processed fourth-quarter earnings projections that fell short of expectations.
The fallout from the Binance breach triggered substantial liquidations across the crypto industry, with rolling 24-hour figures reaching $1.56 billion according to CoinGlass data. Long positions accounted for the majority of these losses, totaling $1.31 billion. In response to the attack, Binance described the event as involving multiple security breaches and confirmed that all user losses would be covered by its dedicated SAFU fund and other company resources. This assurance helped cool downside momentum as the exchange continued to gather facts regarding the incident.
Macro pressures further weighed on market sentiment, with major US tech stocks declining after disappointing earnings reports. Alphabet missed both revenue and earnings targets, causing its stock to fall 13% to $282, its lowest level since April. Similarly, Intel shares plunged 26% in premarket trading on Friday after the company issued a weaker-than-expected outlook for the fourth quarter, projecting sales between $15 billion and $16 billion against analyst estimates of $17 billion to $18 billion.
Despite these headwinds, technical analysis suggests Bitcoin may be poised for a rebound. On lower timeframes, price metrics returned to levels not seen since late June when BTC hit multiyear lows near $57,000. The price closed below the lower band of the Bollinger Bands indicator on Thursday, a phenomenon last observed on June 25 that often implies a mean reversion is due. Additionally, the Relative Strength Index (RSI) dropped to 34.7 on Friday, approaching the oversold zone below 30 for the first time since June 30.
On the four-hour timeframe, the RSI displayed a bullish divergence against the Bitcoin price, forming a higher swing low while the asset price made a lower low. Analysts note that such divergences can signal weakening seller control and indicate a possible local trend change as sell-side pressure wanes below the $77,000 mark.
Sources: Cointelegraph.