Crypto losses have yet to be recouped after new accusations against Binance by the American Securities and Exchange Commission SEC. With the news at the beginning of the week, 52 billion dollars outflow was realized from the spot market. Today, the horizontal trend continues in Bitcoin (BTC) and altcoins.
Following the downward move, some analysts pointed to key technical indicators, voicing their concern that the decline could continue.
Making a statement in the past minutes, Alex Kuptsikevich, one of the analysts of Broker FxPro, drew attention to the status of an important indicator. Kuptsikevich shared that with the recent panic selling, the 200-week moving average in BTC was broken to the downside.
According to the famous analyst, this may cause a decrease of about 15% in the price of Bitcoin. Kuptsikevich commented that if his scenario is realized, BTC will fall to $22,000.
Some names in the sector maintain their positive expectations in the medium term. Bitwise executive Matt Hougan made a statement after the SEC news. Hougan reminded investors that at the end of the day, after every news of sanctions, the market goes up. Bitwise executive thinks they have to endure short-term pain for long-term gains.
Pressure Increases on Crypto
After the bankruptcy of the FTX exchange, US institutions took the crypto world under the spotlight. The CFTC and SEC have signed sanction decisions on the industry since the beginning of the year. In particular, the investigations opened against Paxos, Kraken and Coinbase made a big impact.
With the recent Binance investigation, Ethereum has lost 3% since the start of the week. In altcoins such as DOGE, ADA, SHIB, losses reached 6%.
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