Market Analysis: Keep calm and HOLD!!!

After the hacker attack that drained nearly 120,000 bitcoins of Bitfinex broker, the price of bitcoin dropped about $ 100 in a matter of minutes, but quickly recovered and found support in recent days around $ 590 on the international market. The market awaits for news events for quotations try again to test new highs, but the long-term technical analysis follows indicating that even after Bitifinex case and the huge negative effect on the market, the uptrend channel price of bitcoin continues opened.

Kept these indicators, the trend is the price gain momentum to test levels at around US $ 780. A good entry point for long positions would be at around US $ 560 - US $ 580, with a stop loss at $ 550. The major influencing factor for the price remains the unfolding case of Bitfinex. Customers of the Hong Kong brokerage are divided over the best strategy to recover funds lost to the incident.

The proposal Bitfinex to cover the loss of about US $ 70 million was to confiscate 36% of all users of balances to cover the losses. In return, she offered a token called BFX, which will serve to repay customers, as the operation is accumulating transaction fees. Many customers have consulted lawyers to see what legal action can be taken to try to recover some of the funds.

Meanwhile, some users believe that the solution proposed by Bitfinex is the one with the best chance to generate some income to recover the loss and avoid high costs of legal proceedings. The absence of a regulatory framework for digital currencies causes lawsuits drag on for years and with a high degree of uncertainty regarding the compensation of losses of users.

Proof of this is the case of the Japanese brokerage Mt. Gox, which in 2013 suffered a stroke and lost $ 480 million of users. The case was widely judicialized and so far no one has managed to recover a penny.

Next week, i will dedicate an exclusive post to evaluate the pros and cons of the legal dispute and the unorthodox option BFX token.