Bitcoin (BTC) took another heavy hit yesterday. The price fell from $ 26,800 in a jerk to a low point around $ 25,350. Subsequently, the price was able to recover slightly, but it is not yet able to break through $25,800.
Bitcoin tops out at $25,717 on Binance and $24,040 on Bitvavo at the time of writing. This puts the bitcoin price down 5% today. The total market capitalization is $500 billion and the dominance is 45.7%. The Fear & Greed Index comes out at 44 (Fear).
Bitcoin Fear and Greed Index is 44 — Neutral
Current price: $25,762 pic.twitter.com/e67UAgasDz— Bitcoin Fear and Greed Index (@BitcoinFear) June 6, 2023
Bitcoin crashes after Binance indictment
Before the news, the market assumed that bitcoin would see little movement until next week, but the US Securities and Exchange Commission (SEC) yesterday threw a spanner in the works of many analysts.
The largest crypto exchange in the world was suddenly sued by the SEC yesterday. No fewer than 13 charges have been filed against Binance and its CEO Changpeng Zhao. No less than 61 crypto coins are also labeled as securities according to the SEC, but bitcoin is not among them.
Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law. https://t.co/E06hVOaYby
— Gary Gensler (@GaryGensler) June 5, 2023
Bitcoin flows out of Binance
The news immediately caused a significant outflow of bitcoin from Binance. More than 10,000 BTC was withdrawn from the exchange platform, the third largest outflow this year.
10k #Bitcoin left @binance so far today, the third biggest outflow this year.
Let’s see if Binance can continue with the withdrawals. pic.twitter.com/0zzw7VbG1W
— James V. Streets (@jimmyvs24) June 5, 2023
Despite this, Ki Young Ju, CEO of CryptoQuant, reports that this large outflow is only a small dip in the big picture.
This demonstrates the statistical significance of the ‘biggest $BTC outflows on @Binance this year.’ pic.twitter.com/f9NxPRevUz
— Ki Young Ju (@ki_young_ju) June 5, 2023
Julio Moreno of CryptoQuant also reports that Binance has often had to contend with larger outflows in the past.
Binance sued by the SEC.
In terms of #Bitcoin outflows from the exchange is nothing Binance hasn’t experienced before. pic.twitter.com/LgsPFkqo3g
— Julio Moreno (@jjcmoreno) June 5, 2023
Bitcoin long squeeze
The news was accompanied by a big so-called long squeeze. Coinalyze reports that a whopping $234 million in long positions were liquidated yesterday, the most since the November 2022 FTX crash.
Yesterday was the largest amount of longs liquidation since November last year. pic.twitter.com/wa212XTuRA
— Coinalyse (@coinalyzetool) June 6, 2023
It looks like the fear is well set and investors are expecting a further decline. Analyst Woo Minkyu reports that investors are betting en masse on a decline through short positions. This can of course also lead to a short squeeze.
People are betting that #BTC will fall further ~ Look at the amount of shorting positions here haha!#BTC #Bitcoin pic.twitter.com/2fICEfpGh0
— Woominkyu (@Woo_Minkyu) June 6, 2023
Bitcoin moving average
With the crash, bitcoin also dips below the infamous 200-week moving average which is currently around $26,437. Bitcoin has struggled a lot more with this crucial boundary than during previous market cycles.
#Bitcoin has gone through the 200WMA and 20WMA, but has had a bounce on the Moonraker support. https://t.co/D8S57OKi0c pic.twitter.com/HxO1186TIv
— Decentrader (@decentrader) June 5, 2023
To break the 200-WMA again, bitcoin must first recapture the 21-week exponential moving average, analyst DecodeJar reports. This is currently around $25,811. For the time being, however, this limit seems to offer too much resistance and bitcoin has not yet broken through.
21 week ema, gold, is a major level and #Bitcoin must close above. pic.twitter.com/PgTFxx90UU
— DecodeJar⚡🧙🏻♂️ (@decodejar) June 6, 2023
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