In light of the recent legal actions taken by the US Securities and Exchange Commission (SEC) against Binance and their founder, the largest cryptocurrency exchange worldwide, Bitcoin has experienced a significant plunge. This development has sent shockwaves throughout the crypto market, raising concerns and uncertainty among investors. In this article, we will analyze the impact of the SEC’s lawsuit on Bitcoin’s price movement and explore potential scenarios for its future trajectory.
The SEC’s lawsuit alleges that Binance failed to prevent US customers from using its platform, provided misleading information about its market surveillance controls, and operated an unregistered securities exchange. Additionally, it alleges that a trading firm owned by Binance’s CEO engaged in wash trading on the Binance.US platform, artificially inflating trading volumes. Binance has stated its intention to vigorously defend against the SEC’s claims, emphasizing that it is not a US-based exchange. The news of the lawsuit had a significant impact on the cryptocurrency market, with Bitcoin and Binance’s BNB token experiencing notable price drops.
The current price of Bitcoin is $26,725, with a trading volume exceeding $10 billion in the past 24 hours. This spike in trading volume has coincided with a decline of approximately 2% in Bitcoin’s value. Currently, 19,393,556 BTC coins are circulating out of a maximum supply of 21,000,000 BTC coins.
Observing the technical indicators, Bitcoin faces a significant challenge as it has violated a major support level of $26,750. After breaching the upward trendline, Bitcoin has the potential to decline further toward the next support level, around $26,500. The bearish sentiment is evident as the downward trend in BTC remains strong, with potential support at $26,000.
On the other hand, if Bitcoin manages to reclaim the $26,750 level, there are chances of a rebound toward the next resistance level at $27,250. Breaking above this level could expose Bitcoin to $27,350 or even $27,650. However, the relative strength index (RSI) and moving average convergence divergence (MACD) indicators are currently in a bearish zone, indicating that the probability of a continued bearish trend remains high.
It is important for investors to closely monitor the $26,750 level, as it is likely to act as a key level for Bitcoin in the near future. A break below this level might allow investors to enter a strong selling position in Bitcoin.
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Source: Cryptonews
