Major crypto exchange OKEx said it was unable to contact the holder of a private key.
Bitcoin’s price fell nearly 3% during morning trading on Friday, October 16, dropping to lows around $11,200 on most exchanges.
The decline followed an announcement from the crypto exchange OKEx informing customers that all crypto withdrawals would be suspended from 11:00 a.m. (Hong Kong time) today.
According to the exchange, the suspension of withdrawals is related to an ongoing investigation involving one of the holders of a private key. The party in question is reportedly “currently cooperating with a public security bureau.”
OKEx added in its statement:
“We have not been able to contact the relevant private key holder. As a result, the required authorization could not be completed.”
Aside from withdrawals, other platform functions remained operational, and the exchange reassured customers that funds were safe.
OKEx is one of five major exchanges that collectively hold nearly 10% of Bitcoin’s circulating supply. Users noted that news of a police investigation on a leading platform arrived barely two weeks after U.S. authorities filed legal action against derivatives exchange BitMEX.
BTC/USD
Following OKEx’s announcement, Bitcoin traded above $11,500. However, after the sharp drop, the BTC/USD pair fell below the simple 10-day and 50-day moving averages on the hourly charts.
At the time of writing, the cryptocurrency was struggling to build upward momentum. Although bulls pushed to a high of $11,362 in the last hour, they failed to establish a sustained uptrend. BTC/USD was changing hands around $11,221, remaining below both the 10 and 50 SMA.
The RSI on the daily chart is declining, suggesting further downside risk. If bears apply more downward pressure in later sessions, the 100 SMA provides key support near $10,800. This zone is important for both bulls and bears; BTC/USD has been rejected multiple times at this level during the rally from lows near $10,200.
While price faces resistance at $11,150 and $11,350, preventing a slide below $10,000 remains critical for bulls. Maintaining levels above $10,000 and increasing the number of days spent above $11,000 are important measures of strength for Bitcoin.
According to the chart shared by Andre Martinez of Dalpha Capital, Bitcoin spent 30% and 15% of days above the two price thresholds in 2020.
