The cryptocurrency market has recently witnessed a significant challenge as the Securities and Exchange Commission (SEC) filed a lawsuit against Binance, a major cryptocurrency exchange. This development led to concerns and uncertainty, resulting in a sharp decline in Bitcoin’s price. Market participants are closely monitoring price movements to assess whether Bitcoin will revisit the critical 61.8% Fibonacci retracement level.
The SEC alleges that Binance and its CEO, Changpeng Zhao, provided staking services and offered unregistered securities to the public, violating US securities laws. They identify 12 cryptocurrency tokens as securities and name Bam Trading Services, the operator of Binance.US, as well as its parent company, Bam Management US Holdings, as defendants. The commission considers most crypto tokens, except for Bitcoin (BTC) and Ether (ETH), to be securities.
The SEC lawsuit against Binance triggered a market decline, leading to $320 million in crypto trader liquidations. The significant number of liquidations suggests that the sudden price drop caught many investors off guard. In 24 hours, approximately 119,000 cryptocurrency traders were liquidated.
On the technical front, Bitcoin faces strong resistance around the $25,800 level, supported by the 23.6% Fibonacci retracement level. There is support around the $25,400 level, and if Bitcoin breaks above $25,800, the next resistance level to watch is $26,200. Further upside resistance levels align with the 50% and 61.8% Fibonacci retracement levels at approximately $26,436 and $26,650, respectively.
Divergence between the RSI and MACD indicators has created confusion among investors. While the RSI suggests a selling trend, the MACD indicates a bullish signal. Additionally, the 50-day exponential moving average suggests a bearish trend. Investors must pay close attention to the price range between $25,900 on the upside and $25,400 on the downside. Trading within this range may prove volatile, with a significant move possible around the $25,800 level.
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With the crypto market facing challenges from regulatory bodies such as the SEC, it is becoming increasingly important to stay informed on market developments and trends. Various indicators and the ongoing price fluctuations caused by lawsuits, like the one against Binance, make it crucial for investors to closely monitor the market. Keep track of the cryptocurrency price tracker, stay updated on industry news, and participate in relevant discussions to flourish in the crypto space.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
Source: Cryptonews
