Bitcoin (BTC) price is down today as crypto opens a new week and major risk assets underperform.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
Binance “FUD” threatens BTC price support
Data from Cointelegraph Markets Pro and TradingView shows Bitcoin (BTC) is down 1.6% on the day and heading towards $26,500.
The largest cryptocurrency spent most of the weekend in a sideways trading zone with a lack of clear direction, behavior that continued into the Asia Open.
However, Wall Street’s opening on March 27 triggered a return to volatility and, as of this writing, the downward movement is ongoing.
See Also: Justin Sun vs. SEC, Do Kwon Arrested, 180M Players Tapped Polygon: Asia Express
The main trigger was news that the largest global exchange, Binance, is being sued by US regulators.
A document cites a violation of derivatives trading rules by the Commodity Futures Trading Commission (CFTC), which has been investigating the exchange since 2021.
“The defendants flouted applicable federal law while promoting Binance’s US customer base because it was profitable for them,” she alleges.
Adding to the confusion was a cryptic tweet from Binance CEO Changpeng Zhao, aka CZ, which appeared to echo posts by Sam Bankman-Fried, former CEO of defunct exchange FTX.
4
— CZ Binance (@cz_binance) March 27, 2023
Binance’s internal token, Binance Coin (BNB), has been trading down 4.2% on the day as of this writing.
BNB/USD 1-Day Candlestick Chart (Binance). Source: TradingView
In response, traders were keen to shake off the notion that the event would have a protracted impact on asset performance, with Daan Crypto Trades dubbing it “CEX FUD,” referring to centralized exchanges or the concept of “fear, uncertainty, and doubt.” related
Probably a good idea to refocus on DEX perps and swaps.
They tend to outperform whenever we receive a CEX exchange FUD. pic.twitter.com/kOsNf3uZkT
— Daan Crypto Trades (@DaanCrypto) March 27, 2023
“Which crypto company is NOT being sued at this point?” Scott Melker, the trader, analyst, and podcast host known as the “wolf of the streets,” asked.
Bitcoin key price trendline acts as a magnet
Pressure on crypto markets is not being helped by US stocks – the S&P 500 was flat on the day, while the Nasdaq Composite Index was down nearly 0.7%.
Related: Will BTC exit the bear market? 5 things to know in Bitcoin this week
Meanwhile, the US Dollar Index (DXY) is consolidating after a decline of its own.
US Dollar Index (DXY) 1 hour candlestick chart. Source: TradingView
Amid mixed signals, BTC price fell to $26,541, its lowest level since March 17 before rallying.
For market participants, a key support level that could be tested now is the 200-week moving average (WMA), which currently sits around $25,500.
BTC/USD 1-week candlestick chart (Binance). Source: TradingView
“Again, the $28,600 resistance looks very similar to the first group of attempts at the $25,212 resistance,” Melker wrote in his latest BTC/USD analysis.
“Bear divs, wicks up or through resistance, multiple misses. I know ‘everyone’ is waiting for a retest of $25,212 as support which would be bullish.”
Annotated BTC/USD chart. Credit: Scott Melker/Twitter
“This retest of the 200-week moving average could come sooner or later,” continued on-chain monitoring resource Material Indicators, meanwhile.
“IF it holds for the month close, that would make a compelling argument for bulls. keyword ‘IF’.”
Keith Alan, co-founder of Material Indicators, was less optimistic. Alongside a BTC/USD weekly chart, he noted the loss of several key support lines.
“It doesn’t mean the rally is over, but it’s not a sign of strength. It looks like BTC is headed for a volatile end of the monthly candle,” he added.
Annotated BTC/USD chart. Source: Keith Alan/Twitter
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