How will the SEC fiasco have an impact on Bitcoin and what's next? (BTC price analysis)

How will the SEC fiasco have an impact on Bitcoin and what's next? (BTC price analysis)

The price of Bitcoin is currently on a downward trend, since in April it encountered $ 30,000. However, there are remarkable levels of support that could prevent further decline.

technical analysis

from: edris

The daily chart:

On the daily time frame, the Bitcoin price has continuously formed lower highs and lows in the past few months. The sliding 50-day average acted as a strong resistance and caused a downward rejection near the $ 28,000 mark.

After yesterday's recovery, the price again tests the sliding 50-day average. An interest bully outbreak would lead to a rally in the direction of the $ 30,000 mark, while a further rejection to a decline on the $ 25,000 support brand and the important gliding 200-day average would lead to about the $ 24,000 mark.

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The 4-hour diagram:

If you look at the 4-hour time frame, it is clear that the Bitcoin price at the level of resistance of $ 27,500 encountered a significant barrier and then experienced a strong decline. The short-term level of support of $ 26,000 was also broken, which indicates a continued downward movement with strong dynamics.

However, the BTC Prize after the overbought signal of the RSI has now been reversed and is currently testing the resistance area of ​​$ 27,500. If it exceeds this point, the descending channel will probably also be broken through, which paves the way for a new increase in the market in the direction of the $ 30,000 mark.

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on-chain analysis

of Shayan

While many were optimistic about the beginning of a bull market, due to the recent events, a wave of fear and uncertainty spread in the industry. On Monday, the Securities and Exchange Commission (SEC) filed a lawsuit against Binance, which led to a decline in the Bitcoin price by 5 %. The next day, a lawsuit against Coinbase also submitted.

A graphic that represents the metric "active addresses" and, in addition to the price, also indicates the number of participants that actively interact with the Bitcoin network provides valuable insights. The diagram shows an upward trend and signals a positive view for network activity and demand for Bitcoin.

Unfortunately, this trend has recently reversed and the key figure is now experiencing a significant decline, which is mainly due to the latest fud.

Cryptoquant

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