The markets this week got shaken massively as news of a lawsuit by the SEC against Binance broke the crypto space. Bitcoin lost 6% of its value in a day and countless other tokens took a substantive hit.
The charts are getting harder and harder to analyze with such unprecedented fundamental news.
Previous Analysis
Bitcoin’s multi-month falling wedge is still in play. We had hoped that a bullish catalyst would push the price of the asset out of this pattern. The bullish catalyst was the debt ceiling deal that was conveniently secured just hours before the June 1st deadline. Both the Senate and the U.S. House passed the bill in two consecutive days.
However, news of the Lawsuit against Binance brought extreme fear to investors. Bitcoin plunged more than 6% in less than an hour to $25,383. BNB coin dropped 10% while other cryptos hit double-digit losses.
Soon after the fear had already spread, further clarification came out that it was Binance.US that was being sued, not the entire Binance company. On this bit of relatively good news, Bitcoin rallied back to its previous price from whence it had fallen ($27,000).
As of the time of writing (10:50 AM UTC+3), Bitcoin is trading at $26,490 and is firmly inside the falling wedge. There is still some room to move before the space runs out and the asset has to decide which direction it wants to move in.
We patiently bide our time as we wait for it. The majority of Bitcoin traders are currently only reactive traders, only reacting to the market instead of predicting it. It is understandable, given the huge market-impacting news that drops almost every week out of nowhere with no prior signs.
Binance.US has released an official announcement that they will pause USD fiat channels as early as June 13, 2023. This means that they will not accept any USD fiat deposits, and neither will they process USD fiat withdrawals.
Consequently, users are advised to withdraw their USD balances via bank transfers by June 13, 2023. Binance.US will become a crypto-only exchange.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decisions based solely on what you read here.