In the evening of Monday, the entire crypto market witnessed a slash to value after the United States Securities and Exchange Commission (SEC) charged renowned cryptocurrency exchange Binance with, according to SEC’s Twitter post, “a variety of securities law violations.”
In fact, the SEC raised 13 charges against Binance, which include the alleged manipulation of trading volumes, unlawful operations within its staking program and deceiving the platform’s investors. As a result, Bitcoin (BTC) lost the $26,000 position and has dwindled towards the $25,650 area.
Looking into the price movement of BTC, the world’s major cryptocurrency is following a scenario outlined in our analysis here, without testing the $32K resistance mark.
Instead of growing steadily, it is apparent that the widespread bearish sentiment across the cryptocurrency markets has hurt Bitcoin, and the latest move by the SEC has further-damaged not the majority of cryptocurrencies and thus exacerbating the effect of the bears.
It is possible that if BTC drops below the $25k support zone, the dive may continue towards the 0.5 Fibonacci retracement zone located by $23,300 should market conditions continue to spell bad news for crypto.
Do you believe that it’s just a fud to shake out “weak hands”? Or are we witnessing the beginning of cyclical dismay?