Market Analysis: "Black Monday" for Crypto Community

FXOpen

On June 5, it became known that the SEC filed a lawsuit against the largest cryptocurrency exchange Binance, collapsing the price of bitcoin and other cryptocurrencies.

Here is the essence of claims:
→ improper handling of customer funds,
→ misleading investors and regulators,
→ violation of the law on activities with "unregistered securities” — the stablecoins of the BUSD exchange, the native BNB token, as well as a number of cryptocurrencies.

In addition, a lawsuit was filed against the head of the Binance exchange, Changpeng Zhao, who hastened to reassure customers: do not give in to fears, the exchange continues its work.

As a result, the price of bitcoin dropped sharply to a low in 80 days, while:
→ there was a bearish breakdown on high volumes of the long-term upward channel, which has been in effect since the beginning of the year (shown in blue);
→ the price of bitcoin has reached the lower limit of the descending channel (shown in red), where it has stabilized.

Over a quarter of a billion US dollars worth of buying positions have been liquidated on major crypto exchanges in the past 24 hours.

The bitcoin chart today suggests that the psychological level of USD 25k, which worked as resistance in February-March of this year, will contribute to the weakening of fears among market participants, and where the price of bitcoin can find support.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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