empty
06.06.2023 11:32 AM
SEC triggers powerful correction tsunami in the crypto market

May turned out to be one of the calmest months for cryptocurrencies in 2023. Trading volumes of major assets declined, and on-chain metrics indicated a significant decrease in overall industry interest. The six-week outflow of investments in crypto products, exceeding $320 million, is a direct confirmation of this.

This image is no longer relevant

The first month of summer promised a drastic change in the situation due to the resolution of the debt crisis and the launch of cryptocurrencies in the Hong Kong market. Investors and analysts also leaned towards the belief that the Fed would pause interest rate hikes in June. Taken together, all these factors gave hope for a bullish breakout beyond the consolidation range of $26.6k–$27.5k.

SEC wages war on the crypto industry

The SEC filed a lawsuit against the largest cryptocurrency exchange, Binance, for violating securities regulations. Concurrently, the regulator stated that it considers cryptocurrencies such as SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI as securities. The market's reaction did not take long, and panic selling began.

This image is no longer relevant

Over the past 24 hours, the cryptocurrency market capitalization has dropped by 3.5% and reached $1 trillion. Most assets have already formed local support areas from which they have experienced a local recovery. However, overall, the situation in the cryptocurrency market has taken on a distinctly bearish tone, and further declines in asset prices can be expected.

BTC/USD Analysis

Bitcoin, as the market flagship, also experienced a painful decline towards the support zone of $25.7k–$26k. Amid the panic selling, the asset easily broke below the $26.5k support level and successfully tested $26k. As a result, BTC came close to the base of the upward trend structure.

This image is no longer relevant

At the end of yesterday's trading day, Bitcoin formed a "bearish engulfing" pattern, with trading volumes surging to $20 billion. The nearest targets for the bears will be the range of $24.6k–$25k, where the base of the bullish trend lies. If the bears successfully establish prices below this zone, the path to $23k will open.

This image is no longer relevant

As of 08:00 UTC on the daily chart, bullish signals are emerging. Technical indicators are turning upwards, but it is still too early to talk about the likelihood of a full recovery. Moreover, a bearish crossover has formed on the MACD, indicating further development of the downward trend.

This image is no longer relevant

At the same time, it is quite likely that such a powerful downward movement is necessary for large players to absorb liquidity from "weak hands." This is a classic stage of preparation within capital redistribution before a strong upward movement. The Fear and Greed Index has already shifted to the fear side, indicating an increasing probability of an upward impulse.

This image is no longer relevant

Considering buyers' targets, it is worth highlighting the $26.6k level, which would bring the asset back within the $26.6k–$27.5k range. To achieve this short-term target, Bitcoin needs to successfully break above the $26k level, which is a challenging target given the market sentiments.

Conclusion

Similar movements in the cryptocurrency market resemble an increase in trading activity preceding powerful price movements. In most cases, a decrease in trading activity has led to the start of a strong bullish trend. Fundamentally, the current situation is no different from previous cycles, so it is not advisable to abandon the bullish idea until the area of $24.6k–$25k is definitively broken.

Seleccione el marco de tiempo
5
min
15
min
30
min
1
hora
4
horas
1
día
1
s.
Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO

Recommended Stories

Recomendaciones para operar con el Bitcoin el 2 de mayo según el sistema ICT.

El Bitcoin reanudó inesperadamente el movimiento ascendente el jueves. Recordemos que el crecimiento del Bitcoin comenzó el 9 de abril en el nivel de 75 000 $. Desde entonces

Paolo Greco 07:33 2025-05-02 UTC+2

Recomendaciones para operar en el mercado de criptomonedas el 30 de abril

Los compradores de el Bitcoin y Ethereum continúan aprovechando bien los momentos de caída del mercado y lo compran bastante rápido, como se demostró hoy durante la sesión asiática

Miroslaw Bawulski 09:56 2025-04-30 UTC+2

$200 000 por bitcoin para fin de año

Mientras tanto, el bitcoin aún no logra superar el nivel de $95 000, aunque tiene todo para hacerlo. En Standard Chartered consideran que en el segundo trimestre la primera criptomoneda

Jakub Novak 08:47 2025-04-29 UTC+2

Recomendaciones para operar en el mercado de criptomonedas el 28 de abril

El Bitcoin intenta ser derribado, pero hasta ahora se mantiene bastante firme. Tras rebotar desde el nivel de $92 000, la primera criptomoneda volvió a la zona de $94

Miroslaw Bawulski 08:15 2025-04-28 UTC+2

Recomendaciones para operar con el Bitcoin (BTC/USD) para el 28 de abril según el sistema ICT.

El Bitcoin no mostró ningún movimiento interesante ni el sábado ni el domingo. Sin embargo, el viernes el precio retiró liquidez del último Lower High. Recordemos que la retirada

Paolo Greco 07:28 2025-04-28 UTC+2

El Bitcoin mantiene posibilidades de subir y apunta a los $100 000

Ayer, el Bitcoin subió con bastante fuerza, superando el nivel de $94 000, aunque no logró consolidarse por encima de él. El Ethereum también creció con fuerza, pero luego

Jakub Novak 08:25 2025-04-24 UTC+2

Recomendaciones para operar en el mercado de criptomonedas el 24 de abril

El Bitcoin no logró consolidarse en el nivel de $94 000 y se corrigió hacia la zona de $92 500, donde se siente más cómodo. El Ethereum, tras haber alcanzado

Miroslaw Bawulski 08:25 2025-04-24 UTC+2

El Bitcoin apunta al regreso de la tendencia alcista

Ayer el Bitcoin subió con bastante fuerza. Tras superar el nivel de $90 000, la primera moneda digital se dirigió hacia la zona de $94 000, donde desaceleró su crecimiento

Jakub Novak 13:13 2025-04-23 UTC+2

Recomendaciones para operar con el Ethereum el 23 de abril según el sistema ICT.

El Ethereum apenas logró recuperarse hasta el FVG más cercano y durante dos semanas no pudo seguir subiendo. Sin embargo, el Bitcoin finalmente arrastró hacia arriba a su "hermano menor"

Paolo Greco 07:33 2025-04-23 UTC+2

Recomendaciones para operar con el Bitcoin el 23 de abril según el sistema ICT.

El Bitcoin continuó su movimiento ascendente el martes, lo que generó muchas preguntas. Sin embargo, recordemos que el análisis técnico no puede proporcionar señales con una precisión del 100% todo

Paolo Greco 07:33 2025-04-23 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.