Whales swoop in, sending Bitcoin from $25k to $27k in a matter of hours

Because of the SEC’s charges against both Binance and Coinbase, respectively the largest crypto trading platform in the world and the largest US crypto platform, Bitcoin fell to $25,000, its lowest level since approximately mid-March. However, the largest digital coin refused to fall below its 200-day moving average. After that Whales saw their chance and bought in big numbers. Bitcoin rose to $27k again in a matter of hours.

Glass half full

Since around the end of April, Bitcoin has been trapped in a fairly broad trading band between $30k (ceiling) and $25k (support). It seemed to many that new traders sold Bitcoin (every time it approached $30k) because the largest digital currency did not rise as fast as it did in the first quarter and that Whales bought Bitcoin (every time it came close to $25k) because they know it can only rise in the longer term, especially with the prospect of next year’s halving.

Even though the SEC news about the lawsuits against both Binance and Coinbase was big, the support at $25k held up quite well.

The well-known Dutch analyst Michael Van de Poppe therefore subtly noted that you can call it a ‘glass half full’ situation.

You could argument that we’re going to continue trending down, based on the news.

Or you could argument that this news is the bottom.

— Michaël van de Poppe (@CryptoMichNL) June 6, 2023

Responding to the news dominating the market right now, the SEC charges, Michael said:

You could argue that we’re going to continue trending down, based on the news. Or you could argue that this news is the bottom.

$BTC

Dumping on the SEC action against Binance.

200 MA being tested, but this is a weekly chart, so need to wait for a close.

Been watching $25,212 for months, approaching quickly. pic.twitter.com/pqQRXyinSt

— The Wolf Of All Streets (@scottmelker) June 5, 2023

Scott Melker, who tweets under the moniker Wolf of all Streets, agreed. He stated when the news broke that:

Dumping on the SEC action against Binance. 200 MA being tested, but this is a weekly chart, so need to wait for a close. Been watching $25,212 for months, approaching quickly.

$BTC

A short story. pic.twitter.com/aQt7WTjZz4

— The Wolf Of All Streets (@scottmelker) June 6, 2023

A few hours later buyers swooped in and quickly sent Bitcoin higher. At the moment of writing, Bitcoin trades at $26,800.

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