- A crypto Twitter user tweeted yesterday that Huobi’s BTC collateral is getting dangerously low.
- The post also warned that a bank run may be on the cards if Huobi does not increase its reserves soon.
- At press time, BTC was trading at $30,351.14 after a 24-hour loss of 1.35%.
Analyst Willy Woo revealed in a tweet yesterday that Huobi’s Bitcoin (BTC) collateral is “starting to look dangerously low.” Furthermore, he warned that the exchange may be at risk of a bank run soon.
In the post, Woo revealed that the exchange’s reserves have been in a decline over the past few weeks. At the start of the year, Huobi’s reserves stood at more than $40K. Since then, however, the total has dropped below $20K.
In related news, the BTC’s price stood at $30,351.14 at press time according to CoinMarketCap. This was after it had dropped approximately 1.35% over the past 24 hours. This negative daily performance dragged the market leader’s weekly performance into the red as well. As a result, the crypto was down 0.89% over the past 7 days.
The 24-hour loss meant that the crypto was also trading closer to its daily low of $30,228, while its 24-hour high stood at $30,959.97. In addition to weakening against the Dollar, BTC was also outperformed by Ethereum (ETH) over the past 24 hours. At press time, BTC was down 0.08% against the largest altcoin by market cap.
From a technical perspective, BTC was trading below the 9-day EMA line at press time. If it does not close today’s daily candle above the technical indicator, then it may be at risk of dropping to the 20-day EMA line at around $30K in the next 48 hours. Continued sell pressure may even result in BTC dropping to the crucial support at $29,550 in the coming week.
However, if BTC is able to close the next 2 daily candles above $30,400 then it may look to retest the major resistance level at $31,060 in the following few days. If the leading crypto is able to flip this key resistance into support, then it may have a clear path to climb to $32K.
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