Bitcoin (BTC) managed to recover some of its lost ground after the June 6 Wall Street opening despite new legal action from United States regulators. According to data from Cointelegraph Markets Pro and TradingView, BTC/USD has been rebounding and reached $26,250 on Bitstamp. It had earlier dipped to almost three-month lows of $25,350 after news emerged that the US Securities and Exchange Commission (SEC) was suing exchange Coinbase, claiming that it had acted as an unregistered broker and engaged in an unregistered securities offering through its staking-as-a-service program in 2019.
Ki Young Ju, CEO of analytics platform CryptoQuant, noted that despite the SEC lawsuits, the outflows for “unregistered securities” on Coinbase remained small. Meanwhile, trader and CryptoQuant contributing analyst Maartunn tweeted that he had bought BTC below $26,000. He added that there were still many potential risks ahead, such as the US government selling BTC or a potential recession, but he expected the bottom to be in and the price not to trade any lower than $20,000. Popular trader Skew followed the comeback on low timeframes, arguing that $26,000 was now “key” when it came to buyer demand.
Traders see cause for renewed optimism
Despite previous warnings that a return to the $26,200 range could precede a fresh BTC price correction, some traders were now seeing cause for renewed optimism. According to Michaël van de Poppe, founder and CEO of trading firm Eight, the likelihood of this news actually being the low of the correction had increased substantially. For popular trader Moustache, there seemed little reason to ditch the idea of a broader resurgence coming in the future. BTC/USD, he noted, had dipped only modestly compared to the potential magnitude of the SEC’s news stories. “This is all just scaremongering before the real upswing for $BTC begins,” he stated, adding that it was inevitable in his view.
Moreover, traders were tracking the longer-term perspective, and the mood among market participants remained conspicuously positive. An accompanying chart showed various support levels currently in play, including the all-important 200-week moving average (MA) at $26,400. Skew added that perspective was key, showing a multi-month chart with as yet untested support.
The previous day, legal proceedings had been initiated against the US arm of the largest crypto exchange, Binance, and this had a much more pronounced impact on crypto markets. However, despite the legal action, BTC managed to recover some of its lost ground, and traders were cautiously optimistic about its future prospects.