Cryptos are under threat after KuCoin bankruptcy rumours
- Bitcoin price is likely to rally higher and attract investors for a potential long squeeze.
- Ethereum price is poised for a quick run-up from a technical perspective.
- A bullish price consolidates in a deep discount mode, hinting at a small upside.
The price of Bitcoin has been volatile since June 18, but rumors of bankruptcy have been circulating on several popular forums in the industry. KuCoin, the world’s fifth largest cryptocurrency exchange, is rumored to be bankrupt.
A popular Twitter user with the screen name “Otteroooo” urged users to withdraw their money from KuCoin.
Withdraw from Kucoin now
Not the drill
Thread is out of time
Like and retweet to spread the message
Otter is hardly wrong in such matters
— otteroooo (@otteroooo) July 2, 2022
The same user voiced bankruptcy rumors for BlockFi and Celsius before the news was picked up by major media outlets. Another popular Twitter user is “Beetle”. He tweeted “Cucoin labeled wallets went from $1.8b to $10m in one day.”
Ethereum, Polygon (MATIC), Numeraire (NMR), and Aave ((LEND) are the only coins with wallets labeled KuCoin).
Johnny is the anonymous CEO of the exchange He tweeted In response to these rumours, the exchange says it has no affiliation with LUNA, 3AC, Babel, etc.
Being transparent has always been one of our core principles. We will soon publish our 2022 H1 review report, where you can learn more about our operations.
KuCoin reserves the right to take legal action for FUDs that intentionally spread unverified information.
Don’t FUD, BUIDL.
— Johnny_KuCoin (@lyu_johnny) July 2, 2022
Vald, a popular Indian crypto lend and borrow platform that recently expanded into exchange services, has also stopped its deposits and withdrawals since July. The company said in its latest corporate statement that it has “experienced a significant amount of customer withdrawals of over $197.7 m since 12 June 2022…”.
The statement further added,
Our management is fully committed to working with our financial and legal advisors to the best of our abilities to explore and analyze all possible options, including potential restructuring options that best protect the interests of Wald’s stakeholders.
With another potential drop around the corner, the overall outlook for Bitcoin price and therefore, Ethereum, Ripple and other altcoins is bearish. Despite the bearish backdrop, there may be attempts to trigger quick and short-term rallies.
Bitcoin price remains directionless
Bitcoin price is trading at $19,943 in its second quarter and seems poised for a sweep of the bottom of the range at $18,600. Assuming this move happens, investors can expect BTC to try to follow this move and a higher retest of the $20,910 range.
Although this move is temporarily bullish, it gives investors an opportunity to lower the price of Bitcoin. The resulting decline is likely to sweep the June 18 swing low to $17,578.
BTC/USD 2-Hour Chart
On the other hand, if the Bitcoin price closes the daily candlestick above $21,705, it indicates that the recovery is strong and invalidates the bearish outlook. Such a development would see BTC potentially see the next level of interest rise to $22,837.
Ethereum price remains optimistic
Ethereum price shows a higher chance of rallying compared to Bitcoin price for two reasons. The four-hour demand zone extending from $938 to $1,008 will act as a support level with a view to supporting a move to the equivalent highs formed at the highs of the $1,283 range.
From a market maker’s point of view, a move up makes more sense than a move down where liquidity is lacking. Therefore, investors can expect Ethereum price to rally by 25%.
ETH/USD 2-Hour Chart
As things look up for Ethereum price, a four-hour candlestick below $878 invalidates the bullish thesis and crashes ETH to the $700 psychological level.
A fluctuating price reveals a potential bullish move
The volatility price is trading in a deep-discount mode from $0.307 to $0.324, indicating the possibility of a bullish reversal. Similar highs formed around the $0.386 peak range add credence to the possibility of an uptrend evolution.
BTC also shows an upward trend in the short term and this influences the broader market, with other altcoins including ETH and XRP likely to follow suit and trend higher. As for price volatility, investors should be prepared for a 22% hike.
XRP/USD 2-Hour Chart
The fluctuating price and bullish views of Ethereum are based on the assumption that BTC will lead the way. If Bitcoin experiences a reversal, things could turn ugly for all other altcoins as well.
If the XRP price breaks the four-hour candlestick below $0.286, it will create a lower low and invalidate the bullish thesis.
