Bitcoin, the largest and most popular virtual currency in the world, failed to hold its bullish position and fell towards $27,000 this Tuesday morning.
Bitcoin had hit its highest level in months at $28,889, but fell after the US Federal Reserve announced an interest rate hike. Nevertheless, it should be emphasized that Bitcoin is up 62.7% since the start of the year.
However, BTC’s bulls appear to be fading as it fell to near $27,000 this morning.
However, the reason for its streak of declines could also be attributed to the lawsuit filed by the US Commodity Futures Trading Commission (CFTC) against Binance and its founder Changpeng Zhao.
It should be noted that the United States Commodities Futures Trading Commission (CFTC) is suing Binance, the largest cryptocurrency exchange, and its founder, Changpeng Zhao, accusing them of operating an unregulated platform and having a bogus compliance program.
The global cryptocurrency market is now starting to feel the effects of the CFTC action against Binance, with Bitcoin falling to $27,000, down more than 3% in the previous 24 hours. Meanwhile, Ethereum (ETH), which follows the same trajectory as Bitcoin, is down 2% and trading at $1,730.
Impact of the CFTC lawsuit against Binance
The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Binance and its CEO for operating an illegal exchange and bogus compliance program.
This announcement of course had a harmful influence on the price of Bitcoin (BTC). Moreover, the issue casts doubt on the cryptocurrency market and raises concerns about the regulation of cryptocurrency exchanges.
Investors seem to fear that this lawsuit will lead to further scrutiny of the industry by regulators, which could impact the growth and use of cryptocurrencies.
However, the announcement also fueled the possibilities of further government crackdownswhich will likely negatively impact investor confidence and lower the value of BTC.
Following the bad news, Bitcoin fell over 3% from around $28,889 to around $27,000. Nevertheless, the price has already rebounded slightly and it is uncertain whether the lawsuit will have a long-term influence on the value of BTC.
MicroStrategy’s $150M Bitcoin Purchase Suggests Growing Institutional Confidence in the Crypto Market
THE billionaire Michael Saylor recently invested $150 million in Bitcoin, sparking discussions about the future of cryptocurrency value and its impact on the market. It should be noted that Saylor is a well-known bitcoin advocate and its investment signals growing confidence in cryptocurrency.
However, MicroStrategy’s $150 million purchase of Bitcoin has fueled speculation about the cryptocurrency’s possible bullish turn. This decision shows that institutional investors are returning to the marketwhich could be a sign of increased confidence in Bitcoin and its future prospects.
This announcement along with the increase in whale activity on the network shows that major investors are getting more involved in the crypto market. Thus, the price of Bitcoin should remain optimistic in the future.
This positive news is seen as one of the key factors that will likely help BTC limit its recent losses.
The price of bitcoin
The current Bitcoin price is $27,050 and the 24-hour trading volume is $18.4 billion. Bitcoin has fallen nearly 3.2% in the past 24 hours. Based on technical analysis, the BTC/USD pair is currently showing a bullish trend nonetheless. However, it may encounter resistance as it hits the $28,950 level.
If Bitcoin manages to break above the $28,950 resistance level, it could propel its value to $29,250 or possibly $30,500.
On the other hand, if a downtrend materializes, support levels around $26,500 and $25,500 should provide substantial support.
The price of Ethereum
At present, the price of Ethereum stands at $1,730 and it had a 24-hour trading volume of $8.5 billion. In the past 24 hours, Ethereum saw a decline of 2%.
Currently, Ethereum is struggling to clear the $1,840 resistance level and is trading consistently near its $1,700 support zone, which acts almost like a magnet or brake preventing a sharp climb
Should the ETH/USD pair manage to break above the $1,800 level, it should meet resistance at $1,900, which would, however, be easily reached.
On the downside, the support levels for the ETH/USD pair should be $1700 or $1620, if the $1700 level is breached with a falling price.
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Cryptonews Reviewed top 10 cryptocurrencies for 2023. If you are looking for a higher potential investment opportunity, there are many other projects worth considering.
Disclaimer: This linked article presents the views of crypto industry players and is not part of the editorial content of Cryptonews.com.
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