Bitcoin (BTC) circled $25,800 on June 6 as the aftermath of fresh panic over the largest exchange, Binance, continued.
BTC price risks losing range for several months
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it stabilized after falling to near three-month lows.
The weakness came from a knee-jerk market reaction to news that the United States Securities and Exchange Commission (SEC) sued Binance and its CEO, Changpeng “CZ”[ads1]; Zhao, for “numerous violations of securities law.”
“Through thirteen indictments, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure and calculated evasion of the law,” SEC Chairman Gary Gensler said in part of a press release.
As sparks continued to fly between the exchange and the SEC — even on social media — Bitcoin traders were looking at what a recovery might look like.
Popular trader Crypto Ed considered $26,200 a retracement target before new downside kicked in thanks to the lack of spot buyer demand.
“I think we’re pretty close to a bounce, but could be a short-term bounce,” he summed up in a dedicated YouTube market update following the Binance news.
Crypto Ed added that his downside target was at or just above the $24,000 mark.
Fellow trader Crypto Tony agreed, sharing a similar medium-term roadmap for BTC price.
“Shot a bit more profit on my shorts this morning but now looking for a wave of relief before the final leg down towards $24,500,” he told Twitter followers.
“I expect this to be the last leg down before we accumulate for the pump in July/August.”
On the day, trading suite DecenTrader warned of a high long/short ratio on Bitcoin, this even beat the levels after the implosion of the FTX exchange in November 2022.
“We’ll usually see this one start to taper off if we’re going to continue to bounce,” it argued in part of the Twitter commentary.
Risk assets already “on the edge”
Others looked beyond the Binance story to call for the broader risk asset environment to improve in the coming months.
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Among them was Arthur Hayes, former CEO of derivatives exchange BitMEX, who in a reaction suggested that subpar crypto performance was directly linked to activity in the US economy.
The Treasury General Account (TGA) increased, he noted, repeating a existing theory on the direction of crypto prices for the rest of 2023.
“The market is down on some binance FUD. But regardless of the catalyst, risking the edge is the reason for the TGA replenishment,” he wrote in part of a tweet.
“By the end of the summer, dark will move past that and onto the large amount of money printing humming along in the background.”
According to monitoring resource CoinGlass, crypto long traders saw liquidations totaling just $300 million on June 5.
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This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making a decision.