Bitcoin retraces $27K after Tuesday fall to $25K support due to US SEC lawsuit against Binance.
Bitcoin (BTC) and the larger cryptocurrency market are up 4%, nearly regaining all of the early week losses.
Following the SEC complaint against Binance on Tuesday, June 6, the larger cryptocurrency market experienced a severe correction. A day later, the SEC filed a similar case against another major crypto trading firm, Coinbase, charging the exchange of securities law violations.
However, it appears that investors have chosen to ignore regulatory developments for the time being. Despite the negative impact of the SEC's accusations from yesterday, BTC and ETH have seen a V-shaped comeback in the market.
Let's see how Bitcoin and other cryptocurrencies took a u-turn from getting dumped and then pumped to restore the loss registered on Tuesday.
Bitcoin traded below the 100-Day moving average on Tuesday after experiencing heavy exchange outflows in a single day leading to a 5% crash. However, the reason for which the sentiment gone negative is now cleared with more authority.
As crypto market went down on tuesday due to US SEC's allegations on Binance for security violations, CZ Binance Tweeted that the case is only Binance US centric and has nothing to do with Binance.com. In a Tweet he wrote:
"Clarification: this could only affects Binance.US, IF granted by the court.
It does NOT affect Binance.com. Funds are #SAFU "
The increased regulatory attention in the United States has resulted in a shift in $BTC supply by area. While the United States dominated #Bitcoin production in 2020 and 2021, the pattern has reversed and the price has dropped 11% since mid-2022.
According to Binance on-chain statistics, shorts were liquidated during the market's significant comeback. "Traders had many liquidated #shorts today after displaying some over-eagerness to bet against markets," it said. The heaviest shorts in three months worked as rocket fuel, propelling $BTC back above $27,000. When traders shorted on March 10th, we saw a similar price bounce."
At the press time, Bitcoin (BTC) price is $26,906.94, with a 24-hour trading volume of $19,091,309,502. This reflects a 4.37% increase in the previous 24 hours and a -1.94% decrease in the last seven days. Bitcoin has a market valuation of $521,861,019,277 and a circulating supply of 19 million BTC.
After a significant drop, Bitcoin found support near the $25,400 level. BTC established a base and began a comeback wave over the $26,000 level.
On the hourly chart of the BTC/USD pair, there was a break above a connecting negative trend line with resistance above $26,000. The couple was able to get through the $27,000 barrier and into the positive zone. Bears were active again between the $27,400 and $27,500 levels.
The price has formed a high near $27,368 and is now consolidating gains. It is trading above the 23.6% Fib retracement level of the latest advance from the swing low of $25,369 to the high of $27,368.
In conclusion, If Bitcoin fails to break through the $27,400 barrier, it may fall further. On the downside, immediate support is near the $26,800 mark and the 100 hourly SMA. Overall, the market sentiment is neutral and prices are stable.