Bitcoin Breaks the 100 Daily SMA After SEC Sues Binance Exchange

Cryptocurrencies have taken a dive as the war on cryptos continues with SEC filing charges against the Binance exchange

Skerdian Meta•Tuesday, June 6, 2023•2 min read

Cryptocurrencies have been trading lower for more than a month, but yesterday they took a dive. Bitcoin slipped below its 100-day moving average (green) and fell to a low of $25,500. At the end of last month, we saw a bullish attempt from buyers as they pushed the price back above the 100 SMA and briefly above the 50 SMA (yellow) as well on the daily chart. But, they couldn’t keep the gains above that moving average and the sentiment turned bearish again so the decline resumed.

If further downward momentum continues, the next potential downside targets are the February high at $25,200s and the January high at $24,000. The decline yesterday which was larger than $1,500 came after the announcement from SEC which signaled that the war on crypto continues.

U.S. SEC has filed charges against Binance, accusing them of mishandling customer funds, providing false information to regulators, and misleading investors about operational safeguards. The SEC alleges that Binance mixed customer funds and transferred them secretly to a separate company controlled by Changpeng Zhao, the founder of Binance.

This legal action by the SEC follows a similar case by the Commodities Futures Trading Commission (CFTC) against Binance and its founder Changpeng Zhao. These cases indicate a broader regulatory crackdown within the cryptocurrency trading sector.

Ethereum Daily Chart – The 100 SMA Holding for Now

The trend still remains bullish for Ethereum as the lows keep getting higher

Ethereum lost more than $1,000 but held better than Bitcoin and other cryptocurrencies. The price pierced the 100 SMA (green) on the daily chart, but eventually closed the day above that moving average, so this MA is still holding as support. Binance coin BNB lost around $30, falling from above $300, which means ending the day around 10% lower. Our buy BTC and Ethereum signals survived initially but let’s see if the sell-off will continue today.

Bitcoin BTC Live Chart

[[BTC/USD-graph]]

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.