Bitcoin Shows Negative Momentum, Drops 5% Amid SEC Concerns

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Bitcoin (BTC) price has steadily declined since the mid-April high of around $30,600. After a notable rally on June 6, the flagship crypto has descended 5% amid the current tension in the market. The price action, characterized by lower highs and lower lows, has caused a 15% decline in BTC since April 16. As it stands, the crypto king now stands at significant risk of a crash below $25,500.

While the bear market is still to blame, the current decline in Bitcoin price is attributed to growing Fear, Uncertainty, and Doubt (FUD). This is because of the actions of the United States Securities and Exchange Commission (SEC), which continue to clamp down on the industry.

Following the recent upheaval in the regulator’s lawsuits against crypto firms, questions have risen concerning the industry’s future. Specifically, the recent attack on Binance and Coinbase exchanges has deepened tensions between the government and a volatile industry. These have been marred by scandals and market meltdowns.

Bitcoin Price Suffers Brunt of SEC Concerns

Bitcoin price currently reflects the general sentiment in the broader market. This comes amid lawsuits by the US SEC defined by the ongoing tussle between government officials and digital asset creators. For the layperson, the government comes into play in the whole debacle as the body that has described the crypto industry as the” Wild West.” On the other hand, Creators are the contenders, seeking to legitimize crypto as a future currency.

📢 Breaking News! Governments plan to establish a regulatory circle for cryptocurrencies! Inside the circle, only regulated activities will be allowed, creating a safer environment for investors and businesses. Outside the circle, it’s the wild wild west of crypto! 🤠🌵 💼💱 #XRP pic.twitter.com/mNOMn457ib

— Fabio Silva (@FabioSi57695354) June 10, 2023

According to industry sleuths, the recent actions by the US regulators clearly indicate intentions to ensure crypto has no room in the traditional financial system. Similarly, top regulators are more straightforward about their opinions on the pros and cons of crypto. For instance, in a statement to Bloomberg on June 6, SEC Chair Gary Gensler said:

We don’t need more digital currency … we already have digital currency — it’s called the U.S. dollar.

The results of the legal debate could have a negative impact on the growth of crypto as an industry. Alternatively, it could limit the scope of the regulator’s authority. New York attorney at Davidoff Hutcher & Citron in New York, Federica Pantana, who specializes in SEC cases, says:

With the SEC taking a strong enforcement agenda, there is no question that firms have to take the view that crypto assets are securities, and platforms that exchange these assets have to accept that.

Therefore, the attorney has urged her crypto clients to choose between two options. First, to register with the SEC as this is the most business-friendly move. The alternative is to “drop their business altogether.” Either way, she says this crossroad will determine the industry’s landscape going forward. In her words:

The reverberations of the litigation could put some companies out of business.

Bitcoin Price Must Hold Above $25,390, Or Else…

Bitcoin price is trading with a bearish bias, moving south as bears and bulls fight for control. However, the bears have the upper hand, as shown the falling triangle below. The onus is on the bulls to hold above the support at $25,390 lest they risk a prolonged downtrend.

An increase in selling pressure below the current position could see Bitcoin price lose the critical support mentioned above, paving the way for a further decline. In a dire case, BTC could drop to the confluence support between the horizontal line and the 100-day Simple Moving Average (SMA) at $23,584. The move would constitute a 10% downswing from the current price.

This bearish outlook is supported by the low momentum in Bitcoin price, indicated by the Relative Strength Index (RSI) below the midline. This, coupled with the Awesome Oscillators (AO) position in the negative zone, shows that bears are leading the market.

Also, note the pending bearish crossover that would be authenticated once the 200-day SMA crosses above the 50-day SMA. This is often interpreted as a call to sell and could spell doom for Bitcoin price in the near term.

On the other side, sidelined and late investors could rescue Bitcoin price from the current downtrend. If bullish effort supersedes the bearish force, BTC could ascend, first tagging the 200-day SMA at $27,209 before attesting the 50-day SMA at $27,436. A decisive flip of this barricade into support could pave the way for an extended neck to the $30,667 hurdle. Such a move would denote a 20% climb from the current position.

BTC Alternative

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Among the Key aspects of this ecosystem are the following:

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The public wall is one of the most interesting parts of the platform’s features, presented as a dynamic space for users to view and share AI-generated memes. This feature includes filters and sorting options, which make it possible for users to browse memes based on criteria like popularity, age, or specific themes.

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The $AI token presale is over, and now early investors are counting the days to claim their tokens before listing on June 19. This gives you barely a week to purchase $AI tokens at the discounted rate of $0.0000336 as a first step toward becoming a part of the thriving AiDoge ecosystem.