Bitcoin (BTC) price is down today as the ongoing “congestion” frustrates traders and weighs on market sentiment.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
Binance “FUD” pulls Bitcoin lower
Data from Cointelegraph Markets Pro and TradingView shows Bitcoin trading below $28,000 when Wall Street opens on May 8.
The largest cryptocurrency continues to see sentiment plummet after transaction fees hit their all-time highs and the mempool was nearly 98% full.
Bulk transactions spamming the Bitcoin network are at the heart of the problem, market participants believe. However, the impact was made worse by the fact that the largest global exchange, Binance, repeatedly halted BTC withdrawals.
Binance blamed “congestion” for the outages, creating a backlog of withdrawals that helped worsen an already nervous market sentiment. A subsequent tweet confirmed that the backlog had been cleared.
BTC/USD nonetheless remained subdued, with daily lows of $27,617 at the time of writing, down 7.4% from local highs recorded over the weekend.
Binance’s internal token, Binance Coin (BNB), matched Bitcoin’s 24-hour losses, falling about 2.4% to trade near $315.
BNB/USD 1 hour candlestick chart (Binance). Source: TradingView
Supportive or not, traders were quick to agree with Binance CEO Changpeng Zhao when he dubbed the market reaction to the payout pauses “FUD.”
“Apparently Bitcoin isn’t working again. Best sell everything and move on,” joked Filbfilb, CEO of trading suite Decentrader.
It’s not the first time Binance has found itself at the center of the BTC price controversy. In late March, other news, also labeled “FUD” by Zhao, produced similar effects.
Check out these BTC price support levels
With this, bitcoin traders are beginning to eye potential targets for a long entry amid an extended downtrend.
Related: Binance “FUD” Meets CPI – 5 Things to Know in Bitcoin This Week
Michaël van de Poppe, founder and CEO of trading company Eight, has his sights set on $27,400 and $26,800 respectively.
“Previously it was mentioned that $29.2K was the key level for Bitcoin. We had a crack there but no break. Also, some FUD related to Binance doesn’t help,” read a tweet.
Van de Poppe noted that the weekend’s opening and closing price difference created a “gap” in CME Group’s bitcoin futures markets, implying that an uptrend may now follow to “classify” them ” to fill”.
Annotated BTC/USD chart. Source: Michael van de Poppe/Twitter
Others eyed targets closer to home, including popular retailer CrypNuevo.
“Still in that region of $27,000 to $30,000. Trading below the mid-range again now,” continued Daan Crypto Trades, meanwhile.
“To me there is no trading zone in BTC until we see a proper break or breach of one of these range extremes.”BTC/USD annotated chart. Source: Daan Crypto Trades/ Twitter
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