Decentral Block Post

The price of BNB (BNB) is up around 3% today, in part due to bearish traders opening more BNB-tied contracts despite suffering losses via liquidations in the past 24 hours. In addition, BNB stands extremely "oversold," which may have prompted traders to buy the dip.

BNB price bounces after being "oversold" 

On June 14, BNB price climbed nearly 4% to $253. The gains came as a part of a recovery that saw its price rebounding 12% two days after falling to a six-month low of $220.

From a technical perspective, BNB's rise on June 14 came on the heels of its "oversold" status. Notably, the daily relative strength index (RSI) dropped to around 16.6 two days ago, its lowest reading since March 2020.

An RSI reading below 30 typically precedes a consolidation or recovery period in the market.

For instance, the BNB's daily RSI stint below 30 in December 2022 preceded a 50% price rally in the next two months.

The United States equities markets rose after the consumer price index print on June 13 came in below expectations but Bitcoin (BTC) and the altcoins failed to recover. This suggests that cryptocurrency traders are focused on crypto-specific issues and are not buying on favorable macroeconomic news. 

However, there is a ray of hope for the bulls because Bitcoin is still holding above the $25,000 support. MicroStrategy co-founder Michael Saylor said in a Bloomberg interview on June 13 that the regulatory crackdown by the Securities and Exchange Commission may be bullish for Bitcoin. Saylor expects Bitcoin’s dominance to hit 80% in the future as “mega institutional money” flows into crypto after the “confusion and anxiety” dies down. 

Although Saylor’s views may sound comforting to the Bitcoin bulls, they should keep in mind that MicroStrategy has a large position in Bitcoin, hence his views may be biased.

Traders hate uncertainty and generally stay on the sidelines until clarity emerges. The same may happen with the cryptocurrency markets in the near term. A trending move is likely to begin only after investors sense some regulatory clarity. During uncertain phases, traders could consider reducing their position size to avoid getting whipsawed.

What are the levels that may act as a resistance in Bitcoin and the major altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.

Amid the panic over lawsuits against major cryptocurrency exchanges, one Bitcoin (BTC) advocate argued that the BTC market is much bigger than the one tracked by exchanges.

The total Bitcoin market is not limited to Binance, Coinbase or any other crypto exchange, Jan3 CEO Samson Mow told Cointelegraph at the BTC Prague conference on June 9.

“Whereas I think for Bitcoin, it's much harder to quantify how much of the market it is. It's because a lot of Bitcoin trades are block trades,” Mow said.

In mentioning Bitcoin block trades, Mow referred to private trading channels which allow investors to privately negotiate and proceed with large BTC buy or sell orders. Some of such channels include peer-to-peer (P2P) or over-the-counter (OTC) deals, he noted, adding:

“You kind of have this black box around Bitcoin. You don't really know how much the market is total. If Bitcoin functions as P2P, you're not going to quantifiably measure how much Bitcoin is traded.”

In the latest episode of The Market Report, analyst and writer Marcel Pechman explains that United States inflation slowed for an 11th straight month in May, even though the Consumer Price Index increased 4% year-over-year. That’s down from 4.9% in April but still above the 2% target.

Next, Pechman raises the question of regulation in light of the U.S. Securities and Exchange Commission suing Binance and Coinbase for allegedly violating securities laws by offering tokens including BNB (BNB), Solana (SOL), Cardano (ADA), Polygon (MATIC) and Algorand (ALGO), among others.

When analyzing Binance’s appeal to the SEC’s attempt to freeze its funds, Pechman says the exchange is fighting back and shows how flawed some of the regulator’s arguments are, especially regarding Merit Peak, the offshore trading entity. Pechman emphasizes that Binance.US clients will not face losses even if there is stronger intervention by regulators.

Furthermore, Pechman explains why it is so important for the SEC to score a win in this case, opening room for further action, potentially including the U.S. Department of Justice. But, for now, his base case assumes zero impact on Binance’s international operations.

Next, the show covers a proposed bill in the U.S. House of Representatives, which aims to fire and replace SEC chair Gary Gensler. According to Pechman, Gensler could only be removed from the position if some kind of wrongdoing is proven, which doesn’t seem to be the case.

Ripple’s chief legal officer Stuart Alderoty has called for an investigation into the motivations that led to former SEC official William Hinman delivering his now-infamous speech in 2018.

Alderoty’s demand for an investigation came as part of a June 13 Twitter thread following the public release of the Hinman documents. The documents revealed that Hinman’s speech was delivered despite warnings from other SEC divisions.

In the 2018 speech, Hinman asserted that Ether (ETH) is not a security as a result of it becoming “sufficiently decentralized,” before elaborating on what factors must be satisfied when making that determination.

Alderoty argued that according to the newly released documents, Hinman had ignored the warnings of other SEC officials suggesting “his speech contained made-up analysis with no basis in law,” and that the speech ended up sending confusing messages to the cryptocurrency industry regarding what constitutes a security.

Alderoty said that unelected bureaucrats should only apply the law rather than trying to create new ones, and added that “Hinman’s speech should never again be invoked in any serious discussion about whether a token is or is not a security.”

Binance CEO Changpeng “CZ” Zhao has refuted accusations that Binance has been secretly selling Bitcoin (BTC) to artificially stabilize the price of its native token Binance Coin (BNB).

The rumors have come from several market commentators, including analyst Dylan LeClair and Swan Bitcoin CEO Cory Klippsten, who have accused Binance of intentionally manipulating the market to artificially inflate the value of BNB.

In a June 13 tweet, CZ said that Binance had not sold any of their BTC or BNB, adding that the crypto exchange still held “a bag” of FTX Token (FTT) — the native token of the now-defunct crypto exchange FTX.

“It is amazing they can know exactly who sold based on just a price chart involving millions of traders. FUD,” he added.

CZ’s post was direct response to a June 14 post from technical analysis platform Skew, which accused Binance of manipulating the market through a series of trades involving BTC, BNB and Tether (USDT):

Ava Labs CEO Emin Gün Sirer will be calling on United States officials to “nurture” and “support” responsible blockchain innovation, warning that they face “disastrous consequences” if they don't.

Gün Sirer’s comments in defense of what he describes as a “revolutionary technology” is part of a testimony that he is scheduled to give to the U.S. House Financial Services Committee on June 13 — the audience will include Chair Patrick McHenry, Ranking Member Maxine Waters and other members in the House Committee.

Gün Sirer’s testimony aims to explain how blockchain can “transform society” by making digital services “more efficient, reliable and accessible to all.”

It comes amid a slew of regulatory enforcement actions by the U.S. Securities Exchange Commission (SEC) and U.S. Senator Elizabeth Warren’s indicated plans to build an “anti-crypto army.”

But Gün Sirer fears that such action may backfire with “disastrous consequences” on the country’s economy:

After the tough sell-off seen in the past week, the cryptocurrency markets will be looking for some support from the macroeconomic data this week. The all-important United States consumer price index report on June 13 will be followed up by the Federal Reserve’s policy decision on June 14. 

Both these events could trigger a sharp response from the equities and crypto traders. While a knee-jerk reaction is expected, it will be interesting to note if there is any follow-up to it. Traders may remain cautious as market volatility is likely to pick up over the next few days.

Although the lawsuit by the U.S. Securities and Exchange Commission (SEC) against Binance and Coinbase has weakened sentiment, Bitcoin (BTC) whales are using this opportunity to increase their holdings. Behavior analytics platform Santiment said in a recent report that Bitcoin whales accumulated 57,578 Bitcoin since April 9 even as Bitcoin’s price fell by roughly 10% during the period.

What are the important support levels in Bitcoin and the major altcoins that need to hold for the recovery to start? Let’s study the charts to find out.

S&P 500 Index price analysis

The S&P 500 Index (SPX) reached the overhead resistance at 4,325 on June 9 but the long wick on the day’s candlestick shows that the bears are trying to stall the up-move at this level.

A bearish trend formation has been pressuring cryptocurrency prices for the past eight weeks, driving the total market capitalization to its lowest level in more than two months at $1.06 trillion, a 2.4% decline between June 4 and June 11.

This time, the move wasn’t driven by Bitcoin (BTC), as the leading cryptocurrency gained 0.8% during the seven-day period. The negative pressure came from a handful of altcoins that plunged over 15%, including BNB (BNB), Cardano (ADA), Solana (SOL), Polygon (MATIC) and Polkadot (DOT).

Notice that the downtrend initiated in mid-April has tested the support level in multiple instances, indicating that an eventual break to the upside would require extra effort from the bulls.

The United States Securities and Exchange Commission tagged multiple altcoins as securities in separate lawsuits filed last week against crypto exchanges Binance and Coinbase.

Despite the worsening crypto regulatory environment, two derivatives metrics indicate that bulls are not yet throwing in the towel but will likely have a hard time breaking the bearish price formation to the upside.

Bitcoin (BTC) starts a “massive” week in a precarious position as key support stays out of reach for bulls.

After fresh losses across crypto markets over the weekend, BTC/USD closed the week below $26,000 for the first time in three months.

Both Bitcoin and altcoins continue to struggle thanks to legal battles raging in the United States and their impact on sentiment.

Fragile markets will now encounter a slew of volatility triggers, however, as U.S. macro data releases accompany the next steps in the crypto legal debacle.

In what promises to be five days full of surprises, traders will likely experience none of the lackluster sideways price action which was characteristic of crypto markets before the U.S. upheaval.

Cardano (ADA) bounced modestly after losing nearly 30% of its valuation in the previous week, its worst seven-day performance since May 2021, when the Terra collapse sparked a cryotocurrency market crash.

Nonetheless, ADA looks ready to undergo a sharp recovery in the coming months, based on technical analysis.

ADA price up 30% from six-month lows

On June 12, ADA price rose 2.25% to $0.28, up around 27% from the six-month low of $0.22 seen last week. The rise appeared alongside gains elsewhere in the crypto market, hinting at investors buying the dip.

The reasons behind Cardano's bad week include the U.S. Securities and Exchange Commission (SEC) deeming it an unregistered security in the lawsuits filed against crypto exchanges Binance and Coinbase.

On June 9, U.S.-based investment service Robinhood, which allows users to trade cryptocurrencies, announced it would delist ADA from its platform. This preceded a maximum 30% drop in ADA price on the day.

Venture capital firm Andreessen Horowitz (a16z) is set to open its first office outside of the United States this year, adding to the backdrop of U.S.-based firms seeking greener pastures outside of the country.

Chris Dixon, a16z’s crypto founder and managing partner cited a “predictable business environment” as one of the main factors behind its decision to expand, and comes amid a slew of regulatory actions against crypto firms in the United States in recent months.

Dixon said the decision was finalized after a “productive dialogue” with the U.K. Prime Minister in addition to “months of constructive conversations” with HM Treasury, UK policymakers, and the Financial Conduct Authority.” He added:

“We’re thrilled to open our first international office in a jurisdiction that welcomes blockchain technology and is committed to creating a predictable business environment by pursuing regulations that both embrace web3 and protect consumers.”

However, Dixon said the firm remains “heavily invested” in the U.S., and will continue to work with policymakers and regulators to push for more regulatory clarity for crypto start ups.

Billionaire investor Mark Cuban has become one of the latest industry figures to call out the United States securities regulator for purportedly failing to provide cryptocurrency firms with a clear registration process.

The Shark Tank investor claimed in a June 11 Twitter post that no registration exists in the SEC’s “Framework for “Investment Contract” Analysis of Digital Assets” document, making it “near impossible to know” what constitutes a security in the “crypto universe.”

“Unfortunately none of the elements presented in this page are part of the registration process. Which makes it near impossible to know, with or without an army of securities lawyers, what is or is not a security in the crypto universe.”

While a step-by-step outline isn’t provided, the document does briefly explain what is required for firms pursuant to U.S. federal securities laws.

Among the requirements included the need to disclose all information necessary for investors to make “informed investment decisions” and other “essential managerial efforts” that impact the success of the enterprise.

The United States securities regulator designated a slate of cryptocurrencies as securities in recent lawsuits including Algorand (ALGO) and Flow (FLOW) which hit all-time price lows following the declaration.

On June 10, ALGO and FLOW hit their respective historic lows of $0.098 and $0.46, having dropped around 30% in the past seven days according to CoinGecko data.

Both have slightly rebounded since, with ALGO up over 12.5% and FLOW recovering just over 10.5% since June 10.

Last week the Securities and Exchange Commission (SEC) sued crypto exchanges Binance and Coinbase on June 5 and 6 respectively. In the process, it labeled 16 new cryptocurrencies as securities, including FLOW and Internet Computer (ICP).

ALGO was highlighted in the SEC’s case against Binance but was first singled out in its April lawsuit against Bittrex.

Altcoin prices crumbled after the United States Securities and Exchange Commission (SEC) announced lawsuits against Binance and Coinbase at the start of the week. Apart from the action against the two biggest crypto exchanges, investors seem to be nervous because the SEC labeled 23 cryptocurrencies as securities in the two lawsuits. That brings the total number of cryptocurrencies termed as securities by the SEC to 67.

Among the mayhem, a minor positive is that Bitcoin (BTC) and Ether (ETH) have held out relatively well. This suggests that institutional investors are not panicking and dumping their positions. Due to their outperformance, Bitcoin’s dominance has risen to a year-to-date high of 47.6% and Ether’s to 20%.

The uncertainty in the near term is likely to keep several investors on the sidelines. During this period, the cryptocurrencies that have held out generally tend to do well when the market sentiment improves.

Let’s look at the top-5 cryptocurrencies that are trying to sustain above their respective support levels and are attempting to start a rebound. What are the important support and resistance levels to keep an eye on?

Bitcoin price analysis

Bitcoin once again dipped to the crucial support at $25,250 on June 10, indicating that the bears are keeping up the pressure. The repeated retest of a support level within short intervals tends to weaken it.