On June 6, Bitcoin (BTC) reached a level of $25,800, following the unease caused by the largest exchange, Binance.
BTC price risks losing multimonth range
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it stabilized after plunging to close to three-month minimums.
The market reacted immediately and negatively to the announcement of the United States Securities and Exchange Commission (SEC) filing a lawsuit against Binance and its CEO, Changpeng “CZ” Zhao, for alleged violations of securities laws.
“In a press release, SEC Chair Gary Gensler declared that, through thirteen counts, Zhao and the Binance entities had been found to have carried out a wide-ranging scheme of deception, self-interest, non-disclosure, and violation of the law.”
As the argument between the exchange and the SEC persisted, even on social media, Bitcoin traders considered what a recovery might entail.
Crypto Ed, a well-known trader, anticipated a bounce at $26,200, however spot buyer demand was insufficient, resulting in further downside.
He concluded in a YouTube market update that followed the Binance news that they were nearly ready for a bounce, but it may only be temporary.
Crypto Ed stated that his projected low was at or just above $24,000.
Crypto Tony, another trader, concurred, presenting a comparable mid-term plan for the cost of BTC.
He informed his Twitter followers that he had added more to his short this morning, but was now hoping for a reprieve before the last drop to $24,500.
On the day DecenTrader’s trading suite issued a warning about the high long/short ratio of Bitcoin, this ratio even surpassed levels observed after the collapse of FTX exchange in November 2022.
“We would generally prefer to observe this amount diminishing, if we are to remain buoyant,” it suggested in a portion of its Twitter remarks.
Risk assets already “on edge”
Others looked beyond just the Binance story and called for a better risk asset environment in the upcoming months.
“Here are 5 Things to Know in Bitcoin This Week: ‘$31K Was Not the End'”
Among them was Arthur Hayes, the former CEO of the derivatives exchange BitMEX, who proposed that the poor performance of cryptocurrencies was linked to the U.S. economy.
He noted that the Treasury General Account (TGA) was increasing, repeating an existing theory about the trajectory of crypto prices for the remainder of 2023.
“The market has decreased due to some FUD on Binance. Nevertheless, risk markets are tense due to the TGA refill, regardless of what has caused it,” he stated in part of a tweet.
CoinGlass, a monitoring resource, reported that crypto long traders experienced liquidations amounting to almost $300 million on June 5.
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