• OKEx started testing its withdrawal functionality before reopening.
  • The market volatility may increase once users get access to their funds.

OKEx, one of the world's largest cryptocurrency exchanges, is ready to unlock a cryptocurrency withdrawal functionality on November 27. The trading platform users had to wait over a month until the company settled its legal issues and the Chinese police released one of its co-founders and a private key holder. 

Read the full story of what happened with OKEx here

While the news is welcome for many OKEx customers whose coins got stuck on the troubled trading platform, the cryptocurrency community is anxious that the market volatility will skyrocket once OKEx traders get access to their funds. 

OKEx starts testing withdrawals, volatility ahead

According to the CEO of blockchain analytical company CryptoQuant, Ki-Young Ju, someone has just moved 0.00 BTC from an OKEx wallet. The transaction may be attributed to system tests before the full reopening.

He also added that the event might result in a spike in market volatility as people will start sending withdrawal requests en masse. While he did not elaborate on the direction of the potential price movements, some crypto Twitter users believe that it may trigger the massive correction of the cryptocurrency market as traders will be eager to cash out on their assets that increased in value during the past month.

The cryptocurrency market is overbought

In the past 30 days, the total capitalization of all digital assets in circulation increased from $394 billion to $545 billion, which corresponds to nearly 30% growth. Meanwhile, an average daily trading volume more than doubled during the same period. 

Bitcoin and all major altcoins experienced double-digit growth, while Greed and Fear Index, calculated by the service Alternative.me, shows that the market reached the level of extreme greed. As FXstreet previously reported, it is a precursor of a massive downside correction. If history is any guide, even a minor trigger may set the market unwinding bullish bets.

Traders are ready to lock profits

BTC/USD, weekly and daily charts

BTC/USD weekly and daily charts

If OKEx users choose to take some profit on their released cryptocurrency holding, Bitcoin may dive below $18,000 and extend the decline with the initial focus on the former strong resistance of $16,500, followed by $14,000 (daily EMA50). Meanwhile, the TD Sequential indicator has created a sell signal on both daily and weekly charts, giving additional credence to the bearish scenario.

Meanwhile, considering the strong altcoin correlation with the pioneer digital asset, the Bitcoin sell-off will drag the whole market down. The bullish bets will start collapsing like a house of cards as traders will rush to block profits on their long positions. In this case, the downside correction may continue until the end of the year.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP