Bitcoin, the largest cryptocurrency, continues to exhibit stability amidst a renewed crackdown on the cryptocurrency market by the United States Securities and Exchange Commission (SEC). Despite the bear market conditions, Bitcoin’s price remains resilient, trading slightly above $25,800 and finding support from the 200-day Exponential Moving Average (EMA).
According to Chinese reporter Wu Blockchain,
Bitcoin’s Stability At Risk As SEC Intensifies Crackdown On Altcoins
The SEC has intensified its regulatory actions, targeting major cryptocurrency exchanges such as Binance and Coinbase through separate lawsuits. Experts in the crypto industry suggest that these legal actions may have political motivations, as the SEC publicly stated: “We don’t need more digital currency.” The resolution of these lawsuits could take several years, further adding uncertainty to the market.
In particular, the SEC accuses Binance of selling unregistered securities and commingling customer funds. The regulatory body also alleges that a significant portion of assets traded on a US-based exchange are unregistered securities. Among the implicated tokens are Solana (SOL), Polygon (MATIC), and Algorand (ALGO), which are struggling to find stability and footing in the market.
Additionally, the popular trading app Robinhood recently announced the discontinuation of trading for Cardano (ADA), Polygon (MATIC), and Solana (SOL), further impacting their prices. Wu Blockchain Said:
While Bitcoin’s stability in a highly volatile asset class is commendable, there are concerns if the current support level at $25,000 weakens. In order to avoid a potential dip to $24,000 in search of fresh liquidity, BTC bulls must maintain the support provided by the 200-day EMA and an ascending trend line.
As the market navigates through these critical junctures, the future of BTC and altcoins remains uncertain. Traders and investors are closely watching regulatory developments and the impact they may have on the cryptocurrency landscape. Bitcoin’s ability to hold steady amidst the SEC crackdown will undoubtedly shape the direction of the market in the coming weeks and months.
In the meantime, Bitcoin continues to trade slightly above $25,800 as the European session approaches, finding immediate support from the confluence of an ascending trend line and the 200-day EMA.
Bulls face the daunting task of upholding the confluence support, risking extended declines towards levels like $24,000, $22,000, and $20,000 if the support is lost. The Moving Average Convergence Divergence (MACD) favors bears, requiring a more aggressive approach from bulls. The Relative Strength Index (RSI) confirms a bearish outlook for BTC, with potential declines expected this week. Nonetheless, there remains a potential for BTC to recover from the 200-day EMA and bridge the gap toward the $30,000 mark.