Bitcoin Price Prediction As Traders Get Scared After Binance Suspends Payouts – Where Is BTC Heading Now?

The recent announcement by Binance, the world’s largest cryptocurrency exchange, that it will temporarily halt bitcoin withdrawals, citing high volumes and a spike in processing fees, has spooked traders and raised questions about bitcoin’s future price direction.

While the stop caused bitcoin to temporarily drop in value, its losses were marginal, with the cryptocurrency most recently down about 1% to $28,162, its lowest in almost a week.

In this update, we will take a closer look at the recent drop in bitcoin prices and what it could mean for the cryptocurrency market as a whole.

Binance halts bitcoin withdrawals twice in 12 hours due to large volumes and high fees

Binance has halted bitcoin withdrawals again, stating that they have a backlog of requests that need to be processed.

The exchange previously suspended BTC withdrawals on May 7 due to an alleged overflow of transactions on the blockchain.

Withdrawals resumed half an hour later. However, on May 8, Binance announced that it had again suspended BTC withdrawals due to a high number of pending transactions.

There are reportedly around 400,000 bitcoin transactions currently waiting to be processed in the mempool.

When Binance halted bitcoin withdrawals for the second time, the number of pending transactions in the mempool had risen to around 485,000.

The mempool is an area where transactions are temporarily held until verified by every node on the blockchain.

There are currently reports of around 400,000 transactions awaiting processing in the Bitcoin mempool, with the number rising to around 485,000 at the time of Binance’s second payout halt.

These transactions have a combined value of over $5 billion, and the high volume of unprocessed transactions prompted Binance to temporarily halt BTC withdrawals for the second time in 12 hours.

While Binance temporarily halted bitcoin withdrawals for the second time due to a significant backlog of pending withdrawal requests, OKX reported that its bitcoin deposit and withdrawal services were still operational despite high transaction fees.

However, the high volume of Bitcoin withdrawals added pressure on BTC/USD prices, causing them to fall below $29,000.

Binance bitcoin withdrawals unblocked after temporary halt

Binance, the world’s largest cryptocurrency exchange, suspended bitcoin payouts on Sunday and Monday due to high transaction volume and a spike in processing fees.

The exchange cited a backlog of pending transactions as it failed to provide sufficient rewards for miners to settle trades on the blockchain.

Binance resumed service at a higher cost, replacing pending bitcoin withdrawal transactions with a higher fee to ensure they are picked up by mining pools.

Bitcoin’s value fell slightly to $28,162, its lowest in almost a week due to the stop.

bitcoin price

During the US trading session, Bitcoin’s value dipped below the $28,000 support level, signaling an ongoing downtrend according to technical indicators like the RSI and MACD.

BTC is currently moving towards the $28,000 support level after failing to break above the 50-day exponential moving average.

If it breaks below this level, it could potentially target $27,700. While the RSI is oversold, the broken trendline at $28,350 suggests that the bearish momentum is likely to continue.

Bitcoin price chart – Source: Tradingview

Traders should consider selling below $28,500 with a target of $27,750. However, if BTC manages to surge above $28,500, it can reach $29,000 or even $29,750.

Buy BTC now

Top 15 Cryptocurrencies to Watch in 2023

The Cryptonews Industry Talk team has compiled a list of the top 15 cryptocurrencies for 2023 that show significant growth potential in both the short and long term.

Disclaimer: The Industry Talk section features insights from crypto industry players and is not part of Cryptonews.com editorial content.

Find the best price to buy/sell cryptocurrency

Cryptocurrency Price Tracker – Source: Cryptonews

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers