Bitcoin price retains $27K, but forecast says ‘correction is incoming’
2023.03.28 08:50
Bitcoin (BTC) attempted to rescue $27,000 support on March 28 as the dust settled on United States regulatory action against the Binance cryptocurrency exchange.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Binance CEO dismisses “disappointing” complaint
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD repeatedly testing the $27,000 mark overnight.
The pair had seen downward volatility the day prior as news hit that Binance was at the center of a civil complaint by the Commodity Futures Trading Commission (CFTC).
The move unsettled markets, with commentators well aware of crypto firms previously targeted by authorities in the wake of the FTX debacle.
In a dedicated response to the complaint, Binance CEO Changpeng Zhao dismissed the accusations.
“Today, the CFTC filed an unexpected and disappointing civil complaint, despite our working cooperatively with the CFTC for over two years,” he began.
“Upon an initial review, the complaint appears to contain an incomplete recitation of facts, and we do not agree with the characterization of many of the issues alleged in the complaint.”
Related: US enforcement agencies are turning up the heat on crypto-related crime
Bitcoin nonetheless managed to avoid significant losses, with analytics resource Skew suggesting it was Binance holding up support in an otherwise nervous market.
“Market wants to puke here yet bid walls on binance spot preventing that & attracting more perp longs it seems,” it summarized.
“Solid bid depth between $26K – $24K.”
Bitcoin order book data annotated chart. Source: Skew/ Twitter
Trader Crypto Tony meanwhile added that BTC/USD had succeeded in holding its short-term trading range.
$BTC / $USD – Update
Failed to close below the range low so for me I did not enter a hedge short position alongside my long position yet
For the record, my long I entered a while ago has a stop loss of $25,500 against it. Looking for a hedge short on loss of support zones pic.twitter.com/BtXBwZzNy6
— Crypto Tony (@CryptoTony__) March 28, 2023
For trading resource Stockmoney Lizards, however, there was little to be optimistic about on short timeframes.
“Short-term TA update (2h TF): Rounding top, decreasing RSI, paired with Binance FUD,” part of Twitter commentary stated.
BTC/USD annotated chart. Source: Stockmoney Lizards/ Twitter
“Smells like a correction is incoming.”
Binance vs. CFTC: Just a fine?
Continuing the Binance debate, meanwhile, not everyone was concerned that the exchange would face significant upheaval in the long term.
Related: Will BTC ditch the bear market? 5 things to know in Bitcoin this week
“Todays Binance event is a short term event. Long term it doesn’t matter,” trader Pentoshi wrote in part of a Twitter update.
“Crypto has been through hundreds of FUD events, like Bitfinex, exploits, China bans, lawsuits, insolvencies, you name it. And yet the market and new participants always return. At the end of the day, it’s all just opportunity and $BTC continues to shift hands.“
Trader, analyst and podcast host Scott Melker, known as the “Wolf of All Streets,” referenced a Cointelegraph article that had forecast regulatory fines for Binance.
“Binance has openly been preparing for a regulatory crackdown,” he agreed, describing a fine as the “most likely outcome” of the proceedings.
