Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.
The lawsuit against the crypto sector’s largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added:
“Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.”
At the same time, the ongoing concerns over the Federal Reserve’s policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.
According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.
In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin’s important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.
See Related: CFTC Investigates Binance Over Insider Trading Allegations
Technical Analysis Of Bitcoin (BTC)
Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.
If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.
See Related: Voyager Digital – Binance.US $1.3 Billion Sale Suspended Pending DOJ’s Appeal
