The largest cryptocurrency, Bitcoin, has remained relatively stable amid a revamped market-wide crackdown by the United States Securities and Exchange Commission (SEC). In addition to holding support at above $25,000, Bitcoin price sits above the critical 200-day Exponential Moving Average (EMA), as observed on the daily timeframe chart. According to the Chinese reporter Wu Blockchain, the recent plummet of altcoins and the relative stability of Bitcoin have pushed its market share close to 50%, setting a new high since April 2021.
Historical data shows that the bear markets of 2018 and 2022 saw Bitcoin’s market share rise above 50% for an extended period, even reaching up to 69%. While this stability is commendable for an asset class considered extremely volatile, it may come at a cost, especially if the current support at $25,000 weakens. That could mean that bulls would have an uphill battle to uphold the support reinforced by the 200-day EMA, in order to avoid a possible dip to $24,000 in search of fresh liquidity.
As the SEC intensifies its crackdown on the crypto market, targeting the likes of Binance and Coinbase in separate lawsuits, altcoins are experiencing increased instability. The legal actions could take years to resolve. However, the SEC wants to assert its power in the industry with claims that Binance sold unregistered securities and commingled customer funds. The commission also cast a wider net, alleging that the majority of assets traded on the US-based exchange are unregistered securities, implicating tokens such as Solana (SOL), Polygon (MATIC), and Algorand (ALGO).
Most of the cryptos listed by the SEC as securities struggle to find a new footing in the market, including Cardano (ADA) and Filecoin (FIL). On the other hand, Bitcoin price exhibits commendable stability. The situation worsened for altcoins when trading app Robinhood announced on Friday that investors could no longer buy and sell ADA, MATIC, and SOL on the platform. The community has mixed opinions about the possibility of forking Solana to get rid of SEC problems, and the idea has been supported by Abracadabra founder HGEABC.
As Bitcoin price hovers slightly above $25,800 on Monday ahead of the European session, its immediate downside is supported by a confluence formed by an ascending trend line and the 200-day EMA. Upholding the confluence support will prove challenging for the bulls, and if this support is lost, investors may need to acclimate to extended declines with $24,000, $22,000, and $20,000 being the next potential support levels. Based on the Moving Average Convergence Divergence (MACD), bears currently have the upper hand — a situation calling for a more aggressive approach from the bulls. The Relative Strength Index (RSI) also affirms a bearish outlook for BTC, with declines likely to extend this week. However, traders cannot rule out the possibility of Bitcoin price rebounding from the 200-day EMA and closing the gap to $30,000.
Source: Coingape
