Despite the new legal action from U.S. regulators, Bitcoin (BTC) was able to regain some of its losses after the June 6 Wall Street opening.
Analyst sees Coinbase news marking BTC price low
Data from Cointelegraph Markets Pro and TradingView revealed a continuing recovery for BTC/USD, which achieved a peak of $26,250 on Bitstamp.
The pair had plummeted to a three-month low of $25,350 earlier in the day due to the announcement that the U.S. Securities and Exchange Commission was taking legal action against Coinbase exchange.
A press release accompanying the announcement mentioned that the company had been acting as an unregistered broker, providing a “staking-as-a-service program” which constituted an unregistered securities offering since 2019.
Following legal proceedings against the U.S. branch of the biggest crypto exchange, Binance, the previous day, the repercussions on crypto markets were much more significant, leading to this move.
Ki Young Ju, CEO of analytics platform CryptoQuant, commented that the outflows of unregistered securities on Coinbase are still minimal in spite of the SEC lawsuits it has been facing.
Commenting on the recent movements in the price of Bitcoin, some traders started to feel more hopeful.
Michaël van de Poppe, founder and CEO of trading firm Eight, asserted that the probability of this news being the bottom of the correction has significantly increased.
Maartunn, a Trader and CryptoQuant contributing analyst, declared a BTC purchase at a price point below $26,000.
He tweeted that although there are still some potential risks, such as the US Government selling Bitcoin or the possibility of a recession, he believes the bottom is in and that the price should not go lower than $20,000.
Skew, a well-known trader, maintained that $26,000 was an essential factor in gauging buyer interest when taking into consideration the low timeframes of the market’s comeback.
Traders had cautioned that a rebound to the $26,200 range could be a precursor to a new BTC price drop.
Trader: Bitcoin return to form “inevitable”
Observing the broader picture, there was a clear sense of optimism among market participants.
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For Moustache, a popular trader, there seemed to be no reason to abandon the notion of a broader revival in the near future.
He observed that the /BTC/USD had only experienced a slight decrease in comparison to the possible impact of the SEC news reports.
“He responded by saying that this was just an attempt to create fear before the true rise of $BTC started.”
A chart accompanying the data revealed the different support levels that are currently in effect, particularly the 200-week moving average (MA) at $26,400.
“Perspective is essential,” Skew remarked, displaying a multi-month chart with support that has yet to be tested.
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