The recent announcement by Binance, the world’s biggest cryptocurrency exchange, temporarily halting bitcoin withdrawals raised concerns among traders and led to questions about Bitcoin’s future price direction. Although the halt caused a temporary dip in Bitcoin’s value, its losses were marginal, with the cryptocurrency last down about 1% to $28,162, its lowest in nearly a week.
Binance halted Bitcoin withdrawals twice in 12 hours due to heavy volumes and high fees. The exchange explained the suspension by stating that they have a backlog of requests that need to be processed. They had previously suspended BTC withdrawals on May 7 due to a supposed overflow of transactions on the blockchain, and reinstated withdrawals half an hour later. However, on May 8, Binance suspended BTC withdrawals again due to a high number of pending transactions.
At the time of the second withdrawal halt, there were around 485,000 transactions awaiting processing in the mempool, a space where transactions are temporarily held until they are verified by each node on the blockchain. These unprocessed transactions, collectively valued at over $5 billion, prompted Binance to temporarily halt BTC withdrawals for the second time within 12 hours.
While Binance faced challenges, OKX reported that its Bitcoin deposit and withdrawal services were still operational despite high transaction fees. However, the high volume of Bitcoin withdrawals added pressure on BTC/USD prices, causing them to fall below the $29,000 mark.
Following the temporary halt, Binance resumed the service at a higher cost, replacing pending Bitcoin withdrawal transactions with a higher fee to ensure they are picked up by mining pools. Bitcoin’s value subsequently dropped slightly to $28,162, its lowest point in almost a week due to the suspension.
During the US trading session, Bitcoin’s value fell below the $28,000 support level, signaling a persistent bearish trend according to technical indicators such as RSI and MACD. BTC is currently heading towards the $28,000 support level after failing to cross the 50-day exponential moving average. If it falls below this level, it could potentially target $27,700. While the RSI is oversold, the breached trend line at $28,350 indicates that bearish momentum is likely to persist.
Traders might want to consider selling below $28,500 with a target of $27,750. However, if BTC manages to cross above $28,500, it may reach $29,000 or even $29,750.
The Cryptonews Industry Talk team has also compiled a list of the top 15 cryptocurrencies for 2023, each showcasing considerable growth potential in both the short and long term. As the cryptocurrency market does experience fluctuations, it’s important for investors to keep an eye on these promising coins and remain open to potential changes in the market landscape.