Bitcoin Price Prediction: BTC Plunges Amid Legal Action by US SEC Against Binance and Its Founder
In the wake of recent legal action by the US Securities and Exchange Commission (SEC) against Binance, the world's largest cryptocurrency exchange, and its founder, Bitcoin has witnessed a significant plunge.
This development has sent shockwaves throughout the crypto market, raising concerns and uncertainty among investors.
In this Bitcoin price prediction, we will analyze the impact of the SEC's lawsuit on Bitcoin's price movement and explore potential scenarios for its future trajectory.
SEC Files Lawsuit Against Binance and CEO CZ Alleging Regulatory Violations and Misconduct
The US Securities and Exchange Commission (SEC) has taken legal action against Binance, the largest cryptocurrency exchange globally, and its CEO Changpeng Zhao (CZ).
The SEC's lawsuit alleges that Binance failed to prevent US customers from using its platform, provided misleading information about its market surveillance controls, and operated an unregistered securities exchange.
The complaint further claims that Binance and CZ controlled customer assets, allowing them to mix and divert funds as they pleased.
The SEC accuses Binance of creating separate entities in the US as part of an attempt to evade securities laws.
Additionally, it alleges that a trading firm owned by CZ engaged in wash trading on the Binance.US platform, artificially inflating trading volumes.
Binance has stated its intention to vigorously defend against the SEC's claims, emphasizing that it is not a US-based exchange.
The news of the lawsuit had a significant impact on the cryptocurrency market, with Bitcoin and Binance's BNB token experiencing notable price drops.
Bitcoin Trading Volume Surge Above $10 Billion
The current price of Bitcoin is $26,725, with a trading volume exceeding $10 billion ($12.7 billion, to be precise) in the past 24 hours.
Within this timeframe, Bitcoin has experienced a decline of approximately 2%. As per CoinMarketCap, Bitcoin holds the top rank at #1, boasting a live market capitalization of $518 billion.
Currently, 19,393,556 BTC coins are circulating out of a maximum supply of 21,000,000 BTC coins.
The Bitcoin market is excited and enthusiastic, with a surge in trading volume reaching $10 billion. Additionally, it's worth noting that Bitcoin has recently breached an upward trendline at $26,750.
This development raises the question of whether it could potentially pave the way for further selling pressure in BTC.
In this Bitcoin price prediction, we will delve into the current market trends, analyze technical indicators, and identify key levels to provide insights into where Bitcoin's price could potentially head next.
Bitcoin Price Prediction
On the technical front, Bitcoin faces a significant challenge as it has violated a major support level of $26,750.
Observing the four-hour timeframe and the provided chart, we can see that Bitcoin had been finding support around the $26,750 level, which was reinforced by a triple bottom pattern and an upward trendline.
However, after breaching the upward trendline, Bitcoin has the potential to decline further toward the next support level, around $26,500.
The bearish sentiment is evident as the downward trend in BTC remains strong. Further downside movement is possible, with potential support at $26,000.
A double-bottom pattern around the $26,400 level is also noteworthy, but a double-bottom pattern also reinforces the subsequent support zone after $26,000.
If Bitcoin manages to reclaim the $26,750 level, there are chances of a rebound toward the next resistance level at $27,250.
This resistance level is supported by the 50-day exponential moving average and a bullish crossover of the 50-day and 200-day moving averages. Breaking above this level could expose Bitcoin to $27,350 or even $27,650.
The relative strength index (RSI) and moving average convergence divergence (MACD) indicators are currently in a bearish zone.
This indicates that the probability of a continued bearish trend remains high today. Therefore, it is important to keep a close eye on the $26,750 level, as it is likely to act as a key level for Bitcoin today.
A break below this level may allow investors to enter a strong selling position in Bitcoin.
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