Bitcoin (BTC) defied 3-month lows through June 10 as altcoins in individuals felt the heat from US regulatory pressure which is shown in a 1-hour candlestick chart of BTC/USD on Bitstamp developed by TradingView.
Altcoin Bloodbath as Exchanges Reshape the Landscape
Blockchain Marketplaces Professional and TradingView data showed that BTC/USD hit $25 483 on the day, down more than $1200 from the previous day’s high.
While showing weakness, Bitcoin was spared the fate of major altcoins, which reacted strongly to the delisting that accompanied U.S. legal action against major exchanges.
Trading app Robinhood announced that it would remove support for several cryptocurrencies named in the lawsuit against Binance and Coinbase by the U.S. Securities and Exchange Commission (SEC).
These stocks subsequently plummeted, with Cardano (ADA) and Solana (SOL) down nearly 25% in 24 hours at the time of writing.
“We periodically review the cryptocurrencies we offer at Robinhood,” the firm stated on its World Wide Web site.
Based on our latest review, we decided to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27, 2023, at 6:59 p.m. ET.” This can be seen in a 1-day candlestick chart of ADA/USD (Coinbase) published by TradingView.
Kris Marszalek, CEO of Crypto.com, responded “As expected, after this week’s action on the regulatory front, we saw some exclusions that caused a market selloff”, he added “I guess we’re at the ‘then they fight you’ stage in the crypto adoption curve. Make no mistake: the crypto industry will get through this and emerge stronger than ever.”
Crypto.com confirmed that it would stop its U.S. institutional trading service on June 21st.
BTC Price’s 200-Week Trendline Support Fails
The events had a major impact on the basic capitalization of the cryptocurrency market, with Michaël van de Poppe, founder, and CEO of trading firm 8, warning that the worst could be yet to come.
As with BTC/USD, if the complete crypto cap were to lose its 200-week moving average (MA), this would constitute a clear bearish signal. Bitcoin’s moving average trend line currently stands at about $26,400.
Van de Poppe commented to Twitter Followers alongside a chart that “This is not the weekly candle you would like to see in Crypto’s full market cap.” Because losing the 200-week MA screams is a downtrend continuation.
The aforementioned is shown in an annotated chart of crypto market capitalization published by van de Poppe on his Twitter account.
Van de Poppe, like other popular traders, nonetheless disclosed an interest in altcoin buys at lower prices.
He was accompanied by Crypto Tony, who predicted “incredible inflows” on the table for 2023. These #Altcoin drops excite me too much in Crypto, as they really don’t come around that often.
Crypto Tony (@CryptoTony__) June 10, 2023, published “I have some incredible entries lined up later this year. I’ll share a few later today with you all and they are super realistic… WHO’S READY”
For existing traders, however, the damage was already done as long settlements totaled $320 million for June 10th, according to CoinGlass data, and the day isn’t over yet. While another $70 million in short positions also evaporated. A cryptocurrency settlements chart by CoinGlass is the graphic evidence of what has been explained.
By Marina Meza
