In the past hour, Bitcoin (BTC) price fell more than 3%, prolonging the downward movement that began on May 12, bringing the digital asset down to $ 46,000 on some exchanges.
It all started yesterday when Tesla announced that it will no longer accept Bitcoin as a payment method due to environmental concerns related to cryptocurrency mining. Coupled with the weakness and an almost complete head and shoulders technical pattern, the price of BTC fell to $ 46,000.
The bearish catalyst on May 13th appears to be a Bloomberg Tax News stating the U.S. Department of Justice and the Internal Revenue Service are investigating Binance Holdings Ltd. suspected “illegal activity”.
Although the investigation is not currently confirmed, When the news broke, the price of Bitcoin quickly fell above $ 3,000 and is currently at $ 47,300.
From a technical analysis perspective, the bearish head and shoulders pattern has been confirmed, save for a rebound from the Fibonacci retracement level of 61.8% ($ 42,600). Traders can expect the price of BTC to retest the $ 40,000 level as a support. Below that level, the 200-day moving average is $ 39,000, and in the worst case scenario, the head-and-shoulders target is $ 35,000.
Bitcoin price may hit multi-month lows again, but a quick look at the crypto community on Twitter shows it Most traders see the current pullback as an opportunity to “buy the dip”. including Michael Saylor, who today rrevealed that MicroStrategy has bought another 271 BTC at an average price of USD 55,387.
MicroStrategy purchased an additional 271 bitcoins for $ 15.0 million in cash at an average price of ~ $ 55,387 each #bitcoin. From May 13th, 2021 we have #hodl ~ 91,850 bitcoins were purchased for ~ $ 2,241 billion at an average price of ~ 24,403 per bitcoin. $ MSTRhttps://t.co/EwZnRkAt6k
to???? Michael saylor (@michael_saylor) May 13, 2021
MicroStrategy has purchased an additional 271 bitcoins for $ 15 million in cash at an average price of $ 55,387 per bitcoin. As of May 13, 2021, we own 91,850 bitcoins, which were purchased for $ 2,241 million at an average price of $ 24,403 per bitcoin.
This is not the first time Binance has been accused of illegal activity by US authorities and regulators. On March 12 Cointelegraph reported that Binance was being investigated for its lax “Know Your Customer” and “Anti-Money Laundering” practices. An allegation that, according to Binance CEO Changpeng Zhao, was “unfounded”.
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