Bitcoin (BTC) Falls Below Key Support Level Following Binance Crackdown Bombshell
The cryptocurrency ecosystem is seeing a rapid fall after the latest bombshell featuring the lawsuit filed against the world’s largest crypto trading platform Binance by the United States Securities and Exchange Commission (SEC). The news has unsettled the market with Bitcoin (BTC) price recording a sharp drop of 6.21% as it fell to $25,943.88.
The fall in the price of Bitcoin is an encompassing one seeing a number of major altcoins were named in the lawsuit against the exchange as unregistered securities. Some of these tokens including Cardano (ADA), Solana (SOL), Polygon (MATIC) and Filecoin (FIL) are also falling at a sporadic rate with uncertainties beclouding the future.
Bitcoin dropped below the $26,000 price level which it has used as support for more than a month.
The bearish volatility it is experiencing is robust and may drive a further slump in the coin’s price in the near term. It is not uncommon to find Bitcoin price plunge in relation to unfavorable news in the market, but largely, it has always been able to maintain a good resilience since the start of the year.
Bitcoin Price: How Much Plunge is to be Expected?
With the lawsuit that riled the market still in its early stages, it remains unclear how deep the bearish slump will go. Bitcoin had shown promising signs in the past few weeks such that the expectation of retesting the $30,000 resistance point was now seen as a possibility in the next couple of weeks.
Per the BTC/USDT technical indicators, the pair’s Relative Strength Index (RSI) is pegged at 36.71, a show of steady outflow of assets.
Despite the current turn of events, Bitcoin is still billed to exhibit impressive mid to long term growth as more dominant industry events are on track to subsume this current Binance regulatory crackdowns. That the duo of Hong Kong and the United Arab Emirates (UAE) are joining forces to bolster the crypto industry through functional regulations may have more upside for the market in the long term.
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