Bitcoin price drops to $ 46,000 shortly after it was revealed that Binance was being investigated in the US.

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.

Daily performance of the cryptocurrency market. Fountain: Coin360

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”.

Bitcoin price drops to $ 46,000 shortly after it was revealed that Binance was being investigated in the US.
Bitcoin price drops to $ 46,000 shortly after it was revealed that Binance was being investigated in the US.

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.

4-hour chart of the BTC / USDT pair. Fountain: TradingView

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.

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”.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade movement carries a risk. You must do your own research when making a decision.

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