The leading cryptocurrency, Bitcoin, is currently trading at a discount of nearly $1,000 on the Binance.US exchange, as reported by research firm Kaiko. This price discrepancy has persisted since June 22, coinciding with an announcement made by Binance US that hinted at the potential suspension of USD withdrawals in the coming days. As a result, Bitcoin’s price has remained stable below the $31,000 mark, prompting speculation and predictions about its future trajectory.
The discount on Binance.US is impacting the price of Bitcoin as users facing concerns over USD withdrawals are opting to sell their Bitcoin at discounted prices to access their funds. This has resulted in the BTC/USD pair on Binance.US trading at approximately a $1,000 discount compared to other cryptocurrency exchanges. Despite Binance US still offering USD withdrawal services, the exchange has advised users to consider stablecoins or convert their USD to continue trading cryptocurrencies.
It is important to note that Binance.IS is currently involved in a legal dispute with the SEC. The ongoing dispute has prompted the exchange to suspend USD deposits and inform users about the potential suspension of fiat withdrawal channels. However, the expected cessation of fiat withdrawal routes by Binance’s banking partners has not yet occurred.
The trading discount on Binance.US and concerns over USD withdrawals have had a tangible impact on the price of Bitcoin as users navigate alternative options to access their funds. The current price of Bitcoin stands at $30,384, with a trading volume of $14.5 billion within the last 24 hours. Over this period, Bitcoin has experienced a minor increase of less than 0.50%.
On the daily chart, BTC/USD faces significant resistance around the $31,000 level, which is reinforced by the formation of a double-top pattern. The closing of neutral candles, such as a doji and spinning top, combined with this resistance level, indicate a waning bullish sentiment and exhaustion among buyers. Consequently, a minor correction in Bitcoin’s price is expected.
On the other hand, if Bitcoin surpasses the $31,000 level, the subsequent target to monitor is approximately $32,500. If the momentum persists, the subsequent target could potentially be around $34,000. Meanwhile, the relative strength index (RSI) and moving average convergence divergence (MACD) indicators suggest chances of a bearish correction.
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Source: Cryptonews
