The Capital
Published in

The Capital

Bitcoin Dips After OKEx Suspends Withdraws

Check out our new platform 🚀

The crypto market just got hit with a bit of news. Major crypto exchange OKEx has recently announced suspension from withdraws due to one of its private key holders being compromised. Will this news create a tumbling effect? Many analysts don’t think so. Let’s go over why.


Like many centralized exchanges, OKEx separates its cold storage private keys among its chief members. This provides protection from internal and external bad actors. OKEx has had one private key holder MIA. They believe the holder is under a public security bureau’s investigation and full cooperation is required. Without the holder, associated authorization could not be completed so the exchange decided to freeze withdraws to protect users and the exchange.

3% Drop

After the statement was made, the price of bitcoin dropped from $11,514 to $11,190 within a 30-minute span. This caused a small market wide-pullback. The good news is that price bounced off the support, which shows strong bullish fundamentals. Bulls struggle to sustain price above $11.5k, but as long as they stay within range, a rally could be on the way.

BTC/USD daily chart. Source: TradingView

Bears will try to drag the price down below $11.1k, but they’ll be faced with buyers due to the 20-day exponential moving average being $11,081. The upsloping 20-day EMA and the positive relative strength index suggests that buyers have the upper hand. If the bears manage to break support, the price can drop to $10k.

No Biggie

Just like BitMEX’s criminal charges, OKEx’s situation is contained at the institution’s level. This is due to the issues having no relation to hacking or shitting down of the exchange. The crypto market continues to become desensitized to negative news since we get them more often than not. It seems like bitcoin is set to bounce back from this news, though it’s still vulnerable to any stock market drops over virus fears.




A publishing platform for professionals in business, finance, and tech

Recommended from Medium

Bengaluru Blockchain Meetup

Forrest Pump 2021 In Review. Get Ready For The Future.

GXT Glossary Series 1

5 Crypto Telegram Channels to Join

Telegram airplanes following telegram channels

Review Knit Finance is the next generation of Defi protocol.

Bitcoin Mining Software Company in K

Episode 5: I Am Satoshi Nakamoto series NFTs’ functions

AMA Recap — Polker

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Tecuani Capital

Tecuani Capital

Cryptocurrency Research

More from Medium

Ken Griffin Warns about the End of the US Dollar

Will Crypto Become Mainstream?

A bitcoin covering Benjamin Franklin’s face on the $100 bill.

The Capital Markets of Tomorrow

The Case for Bitcoin as Reserve Currency