Bitcoin's price is testing May lows following reports from Bloomberg, which indicated that the SEC has sued the largest centralized cryptocurrency exchange accusing it of mismanaging customer funds and lying to regulators. The prolonged period of volatility was interrupted by a sharp drop in price, which may indicate a slow June in the crypto market's performance.
- The largest cryptocurrency fell below $26,500 - this level on the on-chain data side was the base of average buying by short-term investors, which may trigger pressure for them to increase supply (capitulation).
The price of Bitcoin falls below the 38.2 Fibonacci retracement of the March 2022 upward wave, making a test of the $24,000 level where we see the 61.8 Fibo abolition remains possible. The RSI on the H4 interval fell below 30 points indicating oversold, and the MACD shows a forming, bearish 'crossover'. Source: xStation5
The correlation between the Nasdaq index (US100, yellow line) and BITCOIN has been weakening since early May. The major cryptocurrency has been consistently oversold, at a time when stocks of technology companies in the US are recording a powerful rally. Currently, the speculative trend has clearly turned to AI. Source: xStation5
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