It was a bearish Monday session, with BTC tumbling 3.04%, to end the day at $27,127. News that the Commodity Futures Trading Commission filed charges against Binance sent BTC and the broader crypto market into negative territory. Technical indicators remain bullish, with $28,500 in sight.
On Monday, Bitcoin (BTC) fell 3.04%. Reversing a 1.82% gain from Sunday, BTC ended the day at $27,127.
A mixed start to the day saw BTC rally to an early high of $28,027. Failing to reach the first major resistance level (R1) at $28,324, BTC fell to a mid-afternoon low of $26,536. BTC fell through the first major support level (S1) at $27,158, and briefly through the second major support level (S2) at $26,838, before ending the day at $27,127.
News of CFTC Lawsuit Against Binance Sent BTC into Negative Territory
After a weekend of inactivity, US regulators were back in action on Monday. The Commodity Futures Trading Commission (CFTC) has taken over SEC regulation by enforcement mantra, suing Binance for illegally selling crypto derivatives to retail investors.
According to Monday’s court filing, Binance “has solicited and accepted orders, accepted margin ownership, and operated a facility for the training of leveraged futures, options, swaps, and retail commodity transactions.”
Binance has been on the radar of US lawmakers and regulators for some time. In March, US lawmakers on both sides of the aisle sent Binance a letter arguing that “the exchange is a hotbed of illegal financial activity that has facilitated more than $10 billion in payments to criminals and sanctions evaders.”
With the SEC in a long-running battle against Ripple, a long drawn-out case of CFTC vs. Binance would test the resistance of investors. A Ripple victory would change the narrative.
The banking sector will also be in the spotlight today. The Committee on Banking, Housing, and Urban Affairs will meet in open session for a hearing on “Recent Bank Failures and the Federal Regulatory Response.”
While the focus will be on Binance, US economic indicators will also generate interest, with consumer confidence figures likely to provide guidance.
Bitcoin (BTC) Price Action – Technical Indicators
This morning, BTC was down 0.17% at $27,080. A range-bound start to the day saw BTC rally to an early high of $27,147, before pulling back.
BTC needs to move through the $27,230 pivot, to target the first major resistance level (R1) at $27,924, and Monday’s high of $28,027. A return to $27,500 would indicate a prolonged bullish session. Crypto news wires need to be crypto-friendly to support a prolonged rally.
In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $28,721, and resistance at $29,000. The third major resistance level (R3) sits at $30,212.
BTC settled above the 100-day EMA ($26,398). The 50-day EMA fell back to the 100-day EMA, while the 100-day EMA broke out from the 200-day EMA, sending mixed signals.
A move through the 50-day EMA ($27,327) would support a break of R1 ($27,924) to target R2 ($28,721) and $29,000. However, a drop-through S1 ($26,433) and the 100-day EMA ($26,398) would give the bears a run at S2 ($25,739). A move through the 50-day EMA would send a bullish signal.
By Audy Castaneda