Bitcoin Went Shaky After Binance US Suspends USD Deposits Amid SEC Scrutiny
Following US SEC regulatory attention, Bitcoin is failing to find traction for a move above the $27,400 barrier level.
Bitcoin price on Friday looks falling again as Binance vs US SEC lawsuit is still creating FUD in the market.
Bitcoin's price stayed constant above $26,000. BTC has lately begun an upward correction after trading as low as $26,139. It was able to break through the $26,250 barrier.
The Securities and Exchange Commission's (SEC) crackdown on heavyweight cryptocurrency exchanges Binance and Coinbase (COIN) has failed to instil fear among knowledgeable bitcoin (BTC) traders, according to options-based implied volatility measurements. That indicates that the lawsuits were anticipated and priced in.
Amid all this chaos, another piece of news came in as Binance US suspended USD deposits due to the current situation. Let's find out what happened.
US Bitcoin Investors Fear Raises as Banking Partners Moving Away
Binance US announced on Thursday that it is suspending US dollar deposits and that its banking partners are ready to halt US currency withdrawal channels as soon as June 13, only days after US regulators sued Binance and its CEO Changpeng Zhao.
In a tweet on Thursday, the US arm of the world's largest crypto exchange said the decision comes as it takes "proactive steps" in its transition to a crypto-only exchange for the time being.
Trading, staking, deposits, and withdrawals in cryptocurrency will remain fully operational, according to a message sent to users by the exchange.
Earlier on Thursday, US financial regulators indicated they backed a freeze on Binance's assets, according to a US Securities and Exchange Commission filing to a federal court that was made public.
Binance US said in a tweet that the SEC's stance on cryptocurrency is "extremely aggressive and intimidating," adding that it has caused friction between the exchange and its banking partners. This new market turmoil affected Bitcoin and other large market cap cryptos also leading to a decline.
Bitcoin Price Analysis
Bitcoin (BTC) is currently trading at $26,496.48 with a 24-hour trading volume of $10,892,832,940. This reflects a 0.48% gain in the previous 24 hours and a -2.47% decrease in the last seven days. Bitcoin has a market worth of $513,950,634,673 with a circulating supply of 19 million BTC.
Bitcoin is currently trading below the 100 hourly Simple Moving Average (SMA). It appears to be encountering resistance near the $26,750 mark. It is near the 50% Fib retracement level of the decline from the swing high of $27,387 to the low of $26,139.
A decisive break above the $26,750 resistance level might kick-start a decent uptrend. The next significant resistance is about $27,000. A close above $27,000 might push the price much higher.
The next significant resistance is nearly $27,400. A clear break above the $27,400 resistance level may signal a move towards the $27,500 level. Any further rises above the $27,500 resistance level may push the price towards the $28,500 level.
Source: TradingView
Conclusion
In conclusion, If Bitcoin fails to break through the $27,000 barrier, it may continue to fall. Another drop. On the downside, immediate support is near the $26,140 level. The next significant support level is near $25,850, below which the price may accelerate lower. In the aforementioned scenario, the price could fall towards the $25,400 support in the short term.
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