- Crypto analyst expresses concerns about Huobi’s depleted Bitcoin collateral.
- Huobi’s reserves decline below $20K, experiencing a downward trend.
- Bitcoin’s price declines by 1.35% in the last 24 hours.
Renowned crypto analyst Willy Woo recently took to Twitter to express concerns about Huobi’s Bitcoin (BTC) collateral, stating that it appears alarmingly depleted. In addition, he cautioned that the exchange could face a bank run shortly.
In the recent announcement, Woo disclosed a downward trend in the exchange reserves over the past few weeks. Initially, Huobi’s reserves were recorded substantially exceeding $40K at the beginning of the year. However, after that period, the total reserves have experienced a decline, falling below the $20K mark.
In the latest update, the price of BTC was recorded at $30,351.14 at the time of reporting, as per CoinMarketCap. This figure reflects a decline of around 1.35% within the last 24 hours. Consequently, this downward trend has also impacted the weekly performance of the market leader, resulting in a decrease of 0.89% over the past 7 days.
The 24-hour decline resulted in the cryptocurrency trading near its daily low of $30,228, reaching a peak of $30,959.97 within the same timeframe. Furthermore, Bitcoin (BTC) performed less than Ethereum (ETH) over the past 24 hours. At the time of writing, BTC experienced a 0.08% decrease against the leading alternative coin in market capitalization.
From a technical standpoint, BTC is trading below the 9-day EMA line. Failure to close today’s daily candle above this key indicator could potentially expose BTC to a decline towards the 20-day EMA line, estimated to be around $30K within the next 48 hours. If selling pressure persists, BTC may drop to the critical support level of $29,550 in the upcoming week.
If BTC successfully concludes the next two consecutive daily trading sessions above the $30,400 mark, it could initiate a retesting of the significant resistance level at $31,060 within the subsequent few days. Should the dominant cryptocurrency convert this crucial resistance level into a supportive one, it may pave the way for a smooth ascent towards the $32,000 price point.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
