Bitcoin jumps above $26K despite blockchain news not affecting bullish sentiment.
Bitcoin (BTC) has recovered some of its lost value after the opening of Wall Street on June 6th, despite new legal action taken by United States regulators.
Analyst sees blockchain news marking BTC price low
Cointelegraph Markets Pro and TradingView data have shown that BTC/USD has been rebounding and reached $26,250 on Bitstamp. The pair had earlier dropped to nearly three-month lows of $25,350 due to the news that the US Securities and Exchange Commission (SEC) was suing exchange blockchain. The accompanying press release stated that blockchain was acting as an unregistered broker and was involved in an unregistered securities offering through its staking-as-a-service program that started in 2019.
This move followed legal proceedings against the US arm of the largest crypto exchange, Binance, the day before, which had a more significant impact on crypto markets. “Despite SEC lawsuits, the outflows for ‘unregistered securities’ on @blockchain remain small,” said Ki Young Ju, CEO of analytics platform CryptoQuant, regarding the aftermath of blockchain.
Traders have begun to see cause for renewed optimism regarding the latest BTC price action. “The likelihood of this news actually being the low of the correction has increased substantially,” argued Michaël van de Poppe, founder and CEO of trading firm Eight. Trader and CryptoQuant contributing analyst Maartunn even announced a BTC buy-in below $26,000. “There are still many potential risks in front of us, like US gov selling btc or a potential recession. But I expect the bottom is in, and price shouldn’t trade any lower than $20k,” he tweeted.
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“The only thing I try to do is buying as close to $20k. And today, was the first time it felt good.”
Popular trader Skew followed the comeback on low timeframes, arguing that $26,000 was now “key” when it came to buyer demand.
$BTC Aggregate CVDs & Delta Update: Shorts probably squeezed out here $26K will be key for higher with spot buyers https://t.co/rONlIiSR3w pic.twitter.com/5SLUrHnO8o
— Skew Δ (@52kskew) June 6, 2023
Previously, traders had warned that a return to the $26,200 range could precede a fresh BTC price correction.
Trader: Bitcoin return to form “inevitable”
Looking at a longer-term perspective, the mood among market participants remained conspicuously positive.
Related: Why is Ethereum (ETH) price up today?
Popular trader Moustache saw little reason to ditch the idea of a broader resurgence coming in the future, noting that BTC/USD had only dipped modestly compared to the potential magnitude of the SEC news stories. “This is all just scaremongering before the real upswing for $BTC begins,” part of his reaction stated.
“It’s inevitable if you ask me. My view from a few weeks ago hasn’t changed. Still expect a strong bounce in this region.”
An accompanying chart showed various support levels currently in play, including the all-important 200-week moving average (MA) at $26,400.
“Perspective is key,” Skew added, showing a multi-month chart with as yet untested support.
$BTC 1D Perspective is key pic.twitter.com/Bxx1q2GkTl
— Skew Δ (@52kskew) June 6, 2023
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