Crypto Markets Tumble on Binance News; Analysts Eye Buy Zones

Crypto Market Plunges Amid Binance Hack Fallout, Analysts Eye Buying Opportunities

The cryptocurrency market is poised to close the business week with significant losses, reeling from a $6.3 billion hack on the Binance exchange that has sent shockwaves across the entire sector.

Major digital assets, including Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP), have not been spared from the downturn. Some prominent analysts suggest that these leading cryptocurrencies could experience further declines before presenting attractive buying opportunities.

Bitcoin, the primary cryptocurrency, saw a sharp drop following the news of the multi-billion dollar attack, falling to a six-week low of approximately $76,500. While bulls managed to temporarily recoup some losses, pushing the price above $78,500, the sell-off persisted. As of press time, BTC is trading near $76,700.

Ali Martinez, among many analysts weighing in on the Binance hack and the subsequent crypto market turmoil, observed that Bitcoin faced rejection upon retesting its 50-day moving average as reports of the incident spread, with resistance solidifying around the $78,000 mark. He indicated that the next significant level to monitor is the 200-day moving average, situated near $73,000. “That’s where I plan to reassess a BTC dip buy,” Martinez stated.

Meanwhile, Rekt Fencer drew a notable parallel between the recent Binance attack, last year’s Bybit hack, and the FTX collapse in 2022. They pointed out that each of these major security incidents was followed by a substantial resurgence in Bitcoin’s price, leading them to claim that “the bottom is in.”

Ethereum has fared even worse than Bitcoin over the past 24 hours, briefly dipping below $2,200 and currently trading just above that threshold. According to Martinez, ETH appears to have broken below a right-angled ascending broadening pattern on its daily chart. This pattern suggests a potential move towards the $2,000 mark, which could emerge as a buying opportunity if Ethereum finds support at that level.

X user Ted also commented on Ethereum’s performance, noting that the asset tested the critical $2,200 zone. He believes that a weekly close below this level could pave the way for a further decline below $2,000.

Ripple’s cross-border payment token has fallen 4% on the day, currently trading around $1.23. Martinez suggests that XRP has been trading within a parallel channel since February, but the recent market collapse saw it breach the structure’s mid-range support, which was around $1.25. “If it cannot reclaim that level, I’m watching for a deeper correction toward the channel’s lower boundary near $1,” the analyst added.

EGRAG CRYPTO also offered its perspective, arguing that the recent sell-off presents XRP investors with an ideal “buy-the-dip” opportunity. The analyst asserted that XRP is currently within an accumulation zone, a phase that has historically preceded explosive price movements of up to 500%, setting potential targets in the $8-$9 range.