SEC Lawsuits Unleash Turmoil in Cryptocurrency Market, Bitcoin and Ether Brace for Impact
Binance and Coinbase Lawsuits Trigger Altcoin Collapse while Bitcoin and Ether Face Bearish Pressures
Tue, 13 Jun 2023, 07:40 am UTC
The cryptocurrency market is experiencing a new wave of uncertainty following regulatory actions by the United States Securities and Exchange Commission (SEC). Leading digital currency exchanges, Binance and Coinbase, have become embroiled in SEC lawsuits, creating waves of apprehension among crypto investors.
The SEC's regulatory crackdown didn't stop at the exchanges, as the agency classified an additional 23 cryptocurrencies as securities, bringing the total to 67. This extended enforcement has sent the altcoin market into a state of collapse, while Bitcoin and Ether have managed to endure the storm relatively well. Their resilience indicates a certain level of stability, as institutional investors refrain from panic-selling their holdings.
In this tumultuous period, Bitcoin's market dominance has reached an annual high of 47.6%, while Ether commands a significant 20%. However, the volatile environment is likely to keep many investors cautious and temporarily sidelined. The cryptocurrencies that weather this storm are expected to thrive when market sentiment improves.
Conversely, Bitcoin is facing significant bearish pressures as it tests a crucial support level at $25,000. Multiple tests within a short timeframe suggest weakening resilience. The bearish dominance is evident in the negative Relative Strength Index (RSI) and descending moving averages. If the BTC/USDT pair breaches the support zone between $25,230 and $23,800, it could trigger panic selling, potentially pushing the pair down towards the critical $20,000 level.
Meanwhile, Ether is undergoing a corrective phase, having dipped below the lower half of the Fibonacci retracement level at $1,727. Although the bulls managed to defend the strong support at $1,678, breaching this level could lead to a more significant correction, potentially sending the pair plummeting to as low as $1,300.
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