Bitcoin Looking for A Quick Reversal After Falling Below $27,000 on SEC Charges
Skerdian Meta • 2 min read
Cryptocurrencies have been displaying strong buying pressure since early January and the recent troubles in the banking sector have been a net positive for most crypto coins, as a place to store the cash. But, since the middle of this month, buyers have found it difficult to push the price up and new highs were small until late last week, when the price started to retreat lower.
In a previous analysis, it was noted that the price of Bitcoin had difficulty holding above the $28,000, which could be a concern for buyers. If BTC managed to hold above this level for some time, it would look more bullish and probably attack the $30,000 level. Unfortunately, this did not happen and the price reversed lower instead in the last few days, which was a bearish sign even though the long-term trend is bullish.
Today we saw a sudden tumble to $26,600s as U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit in the U.S. District Court for the Northern District of Illinois, against Binance and its founder, Changpeng Zhao, alleging that the company knowingly offered unregistered crypto derivatives products in the U.S. in violation of federal law.
The suit claimed that Binance had operated a derivatives trading operation in the US, offering trades for cryptocurrencies such as Bitcoin, Ether, Litecoin, Tether, and Binance USD, referring to them as commodities. So, cryptocurrencies tumbled lower, with Ethereum falling below $1,700. But, they are bouncing right back, as the uncertainties in the traditional banking sector diverge cash flows toward cryptocurrencies.
Bitcoin H1 Chart – MAs Have Been Broken
The current candlestick looks seems quite bullish after a hammer reversal previously
Currently, there is a consolidation at around $27,100-200 and a nearby resistance level at $27,500. If the price manages to push the price above and close above $28,200 today, than this will ne a strong bullish signal, as buyers continue to remain resilient nd traders can consider going long since we already are long on BTC. On the other hand, if the price closes below $27,250, then we might see a deeper correction.
Ethereum H4 Chart – The 100 SMA Held As Support
The support at $1,700 was pierced but held the ground
Ethereum also found it difficult to push to new highs after climbing above $1,8o0 and started making lower highs last week as the price retreated below the 50 SMA (yellow) on the H4 chart. Today we saw a dive, but the decline stopped at the support zone around $1,700, which is being aided by the 100 SMA as well.