Bitcoin Price Steady Above $6K Despite Bithumb Hack

Bitcoin suffered a minor dip last night after it was revealed that hackers had again breached a major cryptocurrency exchange, but the charts still favor a corrective rally to $7,000.

The cryptocurrency fell from $6,740 to $6,560 after Bithumb - the sixth largest cryptocurrency exchange in the world by trading volume - confirmed that the attack had happened between late Tuesday night and early Wednesday morning local time, adding that about $32 million-worth of cryptocurrencies had been stolen.

The Seoul-based cryptocurrency exchange has now halted all deposit and withdrawal service in order to ensure security and announced that it would fully compensate customers.

While the hack highlights the security risks that have plagued the cryptocurrency space and has potential to dent investor sentiment, bitcoin is so far refusing to embrace the negative narrative.

At press time, the cryptocurrency is changing hands at $6,630 on Bitfinex - down just 1 percent in the last 24 hours and holding well above the Asian session low of $6,560.

BTC's resilience has ensured the technical charts are retaining short-term bullish bias, and is trading above the support of the 50-candle moving average on the 4-hour chart, currently at $6,545.

The chart shows a rounding bottom - a bullish reversal pattern - meaning sentiment has gradually shifted from bearish to bullish over the last 10 days.

The relative strength index is also holding above 50.00.

As seen above, the bullish crossover between the 5-day and 10-day MA further indicates a short-term bearish-to-bullish trend change.

A break below $6,510 would abort the short-term bullish view.