Ever since the collapse of the Terra ecosystem, grey clouds have continued to hover over the crypto space. The domino fallouts, bankruptcy, losses, and, more importantly, the SEC’s crackdown has intensified. The latest addition to the SEC’s list is Binance and its CEO, Changpeng Zhao, who has been sued for violating federal securities laws. Alongside this, the company is also facing charges from the Commodity Futures and Trading Commission.
Soon after this, Bitcoin fell to its lowest levels since March, marking an intraday low of $25,388. After falling from the greater highs, the BTC price reached its first target, and the testing of lower targets may completely depend on forced liquidations. However, the possibility of a bullish reversal continues to hover over the star crypto, even though it appears to be completely stuck under the bearish influence.
While the SEC vs Binance news has done huge damage to the BTC price, what can we expect from the star crypto in the coming days?
The SEC’s crackdown, which has shaken the entire crypto space, is not limited to exchanges or platforms like Binance. But they do consider other cryptos like Solana or Cardano, etc, and many other cryptos as ‘securities’. This means that in the coming days, it will not be surprising if exchanges like Coinbase or any other US-based platforms are forced to delist them.
Therefore, this may compel US traders to make a shift from the other altcoins, back to Bitcoin. Therefore, the SEC and Binance news today are extremely bullish for Bitcoin. Besides, as the technicals suggest, the price may soon trigger a rebound.
The BTC price soared above the crucial 200-day MA levels in the first few days of 2023, and since then, the price has plunged once to test these levels. The price further triggered a strong rebound that propelled the price toward yearly highs above $31,000. Therefore, now if the price again drops, then the 200-day MA levels at $23,382.7 may offer a strong base for Bitcoin (BTC) price to trigger a rebound.