Bitcoin Price Prediction: Will BTC Revisit 61.8% Fibonacci Level Following SEC Lawsuit Against Binance
The world's leading cryptocurrency has recently faced a significant challenge as the Securities and Exchange Commission (SEC) filed a lawsuit against Binance, a major cryptocurrency exchange.
This development has sparked concerns and uncertainty in the market, leading to a sharp decline in Bitcoin's price.
Traders and investors are now closely watching the price movements to assess whether Bitcoin will revisit the critical 61.8% Fibonacci retracement level.
This Bitcoin price prediction will analyze the current situation and explore the potential scenarios for Bitcoin's price in the aftermath of the SEC lawsuit against Binance.
US SEC Identifies 12 Cryptocurrency Tokens as Securities in Binance Lawsuit
On Monday, the US Securities and Exchange Commission (SEC) complained about Binance, a cryptocurrency exchange led by Changpeng Zhao (CZ).
The SEC alleges that Binance provided staking services and offered unregistered securities to the public, which violates US securities laws.
In the complaint, the SEC identifies 12 crypto tokens as securities. The lawsuit also names Bam Trading Services, the operator of Binance.US, and its parent company Bam Management US Holdings, as defendants.
According to the complaint, Zhao owns 81% of Bam Management.
According to the commission, the defendants have been providing trading access to crypto assets that are marketed and sold as investment contracts, thus qualifying as securities under US law.
Notably, Bitcoin (BTC) and Ether (ETH) are not specifically mentioned in the Binance lawsuit filed on Monday.
However, SEC Chairman Gary Gensler has stated that, apart from Bitcoin, most crypto tokens are considered securities.
When asked about the classification of Ether as a security or commodity during his testimony before the House Financial Services Committee, Gensler chose not to provide a definitive answer.
SEC Lawsuit Against Binance Triggers Market Decline, Resulting in $320 Million in Crypto Trader Liquidations
The US Securities and Exchange Commission (SEC) filed a lawsuit against the cryptocurrency exchange Binance and its CEO for multiple violations of federal securities laws, leading to a significant drop in cryptocurrency prices on Monday.
In response to the SEC's allegations, traders experienced nearly $320 million in liquidations, as reported by CoinGlass.
The substantial number of liquidations indicates that the sudden price decline surprised many investors. Within 24 hours, approximately 119,000 cryptocurrency traders were liquidated, according to data from CoinGlass.
Bitcoin Price Prediction
On Tuesday, Bitcoin trades at $25,746, representing an over 4% drop in price.
The price of Bitcoin briefly dropped below $25,400 following the SEC's lawsuit against the prominent cryptocurrency exchange, Binance.
As a result, Bitcoin bulls are now uncertain whether the market has reached its bottom.
On the technical front, Bitcoin faces strong resistance around the $25,800 level. The 23.6% Fibonacci retracement level supports this level.
On the downside, there is support around the $25,400 level. If Bitcoin breaks above the $25,800 level, the next resistance level to watch is $26,200.
Further upside resistance levels can be found around the 50% and 61.8% Fibonacci retracement levels at approximately $26,436 and $26,650, respectively.
There is a divergence between the RSI and MACD indicators. The RSI suggests a selling trend, while the MACD indicates a bullish signal.
Additionally, the 50-day exponential moving average suggests a bearish trend. This has confused investors, particularly with the upcoming Bitcoin halving event.
Therefore, it is important to monitor the price within the range of $25,900 on the upside and $25,400 on the downside. Trading within this range may be choppy.
Once Bitcoin breaks out of this range, there may be an opportunity to capture a significant move, particularly around the $25,800 level.
Top 15 Cryptocurrencies to Watch in 2023
If you're interested in getting involved with a cryptocurrency project during its early phase, it is advisable to explore presale tokens.
The team at Cryptonews Industry Talk has curated a comprehensive list of the most promising coins in 2023, providing valuable information about these projects.
This list is regularly updated on a weekly basis, featuring new altcoins and ICO projects, so it's recommended to revisit it for the latest additions.
Stay informed and stay tuned for exciting opportunities in the crypto space.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.