Bitcoin price bounces past $26K as Coinbase news fails to shake bulls
2023.06.06 17:45
Bitcoin (BTC) recovered some of its lost ground after the June 6 Wall Street open despite new legal action from United States regulators.
BTC/USD 1-day candle chart on Bitstamp. Source: TradingView
Analyst sees Coinbase news marking BTC price low
Data from Cointelegraph Markets Pro and TradingView tracked an ongoing rebound for BTC/USD, which reached $26,250 on Bitstamp.
The pair had dipped to nearly three-month lows of $25,350 earlier in the day amid news that the U.S. Securities and Exchange Commission was suing exchange Coinbase.
An accompanying press release referred to acting as an unregistered broker “engaging in an unregistered securities offering through its staking-as-a-service program” beginning in 2019.
The move followed legal proceedings against the U.S. arm of the largest crypto exchange, Binance, the day prior, this having a much more pronounced impact on crypto markets.
“Despite SEC lawsuits, the outflows for ’unregistered securities’ on @coinbase remain small,” Ki Young Ju, CEO of analytics platform CryptoQuant, noted about the Coinbase aftermath.
Commenting on the latest BTC price action, some traders began to see cause for renewed optimism.
“The likelihood of this news actually being the low of the correction has increased substantially, Michaël van de Poppe, founder and CEO of trading firm Eight, argued.
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 ant lower than $20k,” he tweeted.
“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 pic.twitter.com/5SLUrHnO8o
— Skew Δ (@52kskew) June 6, 2023
Previously, traders had nonetheless warned that a return to the $26,200 range could precede a fresh BTC price correction.
Trader: Bitcoin return to form “inevitable”
Tracking the longer-term perspective, the mood among market participants remained conspicuously positive.
Related: Why is Ethereum (ETH) price up today?
For popular trader Moustache, there seemed little reason to ditch the idea of a broader resurgence coming in the future.
BTC/USD, he noted on the day, had dipped only 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.
BTC/USD annotated chart. Source: Moustache/Twitter
“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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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
