Bitcoin, shaken by ETF fund outflow and Coldcard hacking... testing the $60,000 support line?

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Bitcoin (BTC) has fallen below $63,000 due to a combination of institutional fund outflows and concerns over Coldcard hardware wallet attacks. Technically, $60,000 has emerged as the next key defense line.

According to investment media FXStreet on August 3 (local time), Bitcoin continued its weakness on Monday after falling more than 2.8% last week. According to SoSoValue, US-listed spot Bitcoin Exchange Traded Funds (ETFs) recorded a net outflow of $61.53 million last week, ending a three-week streak of net inflows. If fund outflows continue or expand in scale, the downward pressure on BTC could increase.

The possibility of additional attacks targeting Coldcard wallets also weighed on investor sentiment. Alex Thorn, Head of Research at Galaxy Research, warned that movements suspected to be a fourth organized attack have been detected. Approximately 388.9 BTC was moved to 216 newly created addresses through 218 transactions related to 462 affected addresses between blocks 960,778 and 960,792. This volume of activity was about 45 times higher than the baseline before the incident, and some funds have already been moved to secondary addresses.

Galaxy Research previously analyzed that 1,367.05 BTC was drained from 4,585 addresses in three suspected attacks targeting addresses generated by Coldcard. K33 Research identified a vulnerability in the randomness used for wallet seed generation as the cause of the attack. Coldcard has stopped shipping devices with problematic firmware, destroyed remaining products, and advised users to generate new seeds and move their funds. Satscard, Opendime, and TapSigner were not affected, and this issue is also limited to certain Coldcard devices, not affecting the Bitcoin network or the blockchain itself.

Technically, BTC closed below the 200-week Simple Moving Average (SMA) of $63,769 last week, after falling 2.8%. If further correction continues, there is a possibility of a drop to $60,000, which coincides with the long-term uptrend line connecting major lows since January 2023. The weekly Relative Strength Index (RSI) is falling in bearish territory at 38, but the bullish crossover of the Moving Average Convergence Divergence (MACD) formed in mid-July is still holding. Conversely, if it closes above the 78.6% Fibonacci retracement level of $65,520, it could attempt to recover to the 61.8% retracement level of $78,490.

Bearish signals are also dominant on the daily chart. Bitcoin remains below the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) of $64,652, $67,192, and $72,995, respectively. The RSI is in bearish territory at 43, and the MACD histogram also maintains negative values below the 0 line. Upper resistance levels are formed sequentially starting from $64,004, followed by $64,652, $67,192, $72,995, and $84,410. At the bottom, $60,000, which is both a psychological support line and coincides with the long-term uptrend line, is considered the biggest watershed.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*