The crypto market has recently experienced a significant decline, following a lawsuit filed against Binance, the world’s largest cryptocurrency exchange, and its CEO Changpeng “CZ” Zhao. This led to Bitcoin’s price witnessing an intraday loss of nearly 5% on June 5th, breaching the critical support level of $26,000. It appears that the Bitcoin price is poised for a longer correction.
Despite the legal challenges facing Binance, the crypto industry shows unwavering support for the exchange. A recent poll reveals a strong backing against the US SEC’s actions. Nevertheless, the ongoing correction phase in Bitcoin price gained momentum with the crypto market sell-off. Amid this downfall, the breach of May’s bottom support of $26,000 offers sellers more opportunities to push the coin price lower. The intraday loss of 0.68% serves as evidence that bearish momentum is indeed active in the market.
With sustained selling, the Bitcoin price could plunge to $25,000, followed by $24,000, accounting for a potential 6% loss. However, it’s essential to consider the support trendline that has been carrying Bitcoin’s ongoing uptrend. This trendline has previously triggered rallies in January and mid-March, indicating that buyers are experiencing intense demand pressure at this dynamic support level.
As long as this support trendline holds, Bitcoin holders can maintain a bullish sentiment. The current price correction, which is part of a channel pattern, could lead to a drop to the lower trendline at $24,000. The only potential mitigating factor might be the interim support at $25,000, which could offset the fall.
Analyzing key indicators offers some insights into the market situation. The daily Relative Strength Index (RSI) indicates that bears have gone overboard with selling, suggesting a minor sideways trend might be expected. Additionally, the 200-day Exponential Moving Average (EMA) near $25,000 provides added support at this level.
In conclusion, the recent events surrounding Binance and the SEC have caused a stir in the crypto market, leading to a decline in Bitcoin’s price. However, the market may still hold opportunities for those who keep a close eye on support levels and trend patterns. As always, it is crucial to conduct thorough market research before investing in cryptocurrencies, considering the potential risks and rewards of the market’s ever-changing conditions.
Please note that the presented content includes the personal opinion of the author and is subject to market conditions. Conduct thorough market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for personal financial loss.
Source: Coingape
