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Bitcoin (BTC) recovered some of its lost ground after the June 6 Wall Street open despite new legal action from United States regulators.

Analyst sees Coinbase news marking BTC price low

Data from Cointelegraph Markets Pro and TradingView tracked an ongoing rebound for BTC/USD, which reached $26,250 on Bitstamp.

The pair had dipped to nearly three-month lows of $25,350 earlier in the day amid news that the U.S. Securities and Exchange Commission was suing exchange Coinbase.

An accompanying press release referred to acting as an unregistered broker “engaging in an unregistered securities offering through its staking-as-a-service program” beginning in 2019.

The move followed legal proceedings against the U.S. arm of the largest crypto exchange, Binance, the day prior, this having a much more pronounced impact on crypto markets.

Bitcoin (BTC) circled $25,800 on June 6 as the aftermath of fresh panic over the largest exchange, Binance, lingered.

BTC price risks losing multimonth range

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it steadied after dropping to near three-month lows.

The weakness came from a knee-jerk market reaction to the news that the United States Securities and Exchange Commission (SEC) was suing Binance and its CEO, Changpeng “CZ” Zhao, over “a variety of securities law violations.”

“Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,” SEC Chair Gary Gensler stated in part of a press release.

While sparks continued to fly between the exchange and the SEC — even on social media — Bitcoin traders looked to what a recovery might look like.

Bitcoin’s price declined 5% in one hour on June 5 after the United States Securities and Exchange Commission (SEC) filed a lawsuit against Binance on allegations of violating federal securities laws. Even though the $25,500 support held for Bitcoin, investors are still digesting the potential impacts of the regulatory action, which also involves Binance CEO Changpeng “CZ” Zhao.

According to digital asset investment firm Arca CEO Jeff Dorman, the direct impact of an eventual shutdown of Binance operations in the U.S. is irrelevant. Furthermore, non-criminal charges from the past should not destabilize Binance’s present international structures. Still, Arca’s CEO expects negative market sentiment to prevail as the crypto community cheers for CZ and Binance.

Binance is not the only pressing concern

Even if the SEC charges against Binance have little to no impact in the medium term, there’s additional uncertainty coming from Digital Currency Group (DCG) and its subsidiary Genesis Capital, which filed for Chapter 11 bankruptcy on Jan. 19.

According to Jon Reiter, CEO of Data Finnovation and ChainArgos, DCG CEO Barry Silbert pulled $1 billion out of his personal holdings just as cryptocurrency hedge fund Three Arrows Capital defaulted. While this could have been a coincidence, it certainly draws even more attention to the intercompany loans and deals inside DCG.

Traders now question whether Bitcoin (BTC) will test the $25,000 resistance, a level unseen since March 17. Considering that the U.S. debt ceiling crisis has been averted, the odds for a surprise Bitcoin price rally seem even more unlikely in the short term.

Bitcoin (BTC) fell to multi-day lows at the June 5 Wall Street open as action heated up on exchanges.

Van de Poppe: Trend line failure could mean "bottom isn't in yet"

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD wicking to $26,640 on Bitstamp.

Down nearly 3% versus the weekend’s highs, the pair looked weak as key support lines inched closer.

Among these was the 200-week moving average (MA), now at $26,400, which had weathered repeated tests to stay as support since mid-March.

“Bitcoin is going to get another retest of support at the 200-Week MA (purple),” Keith Alan, co-founder of monitoring resource Material Indicators, warned in commentary on the weekly chart.

Bitcoin (BTC) starts the second week of June in familiar territory, but a breakout is coming, investors say.

After a calm weekly close, BTC/USD is firmly in its established trading range, while under the hood, market participants are preparing for some dramatic shifts.

It has been a long time coming, and for seasoned traders, the signs are increasingly pointing to volatility making a comeback.

There is little by way of macroeconomic triggers due this week, making the focus shift elsewhere for cues as to what BTC price action might do in the short term.

The on-chain analysis provides other interesting insights, reinforcing the idea that for Bitcoin currently, the only “boring” part is the spot price.

The United States equities markets welcomed the debt ceiling deal and the May nonfarm payrolls data on June 2 with strong rallies. The S&P 500 rose 1.8% during the week while the tech-heavy Nasdaq was up 2%. This was the sixth successive week of gains for the Nasdaq, the first such occasion since January 2020.

In addition to the above, the expectation that the Federal Reserve will be in a pause mode during its next meeting may have acted as a catalyst for the rally. CME’s FedWatch Tool is showing a 75% probability of a pause, with the remaining 25% expecting a 25 basis points hike at the June 14 meeting.

Rallies in the equities markets failed to trigger a similar performance in Bitcoin (BTC) and the altcoins. However, a minor positive is that several major cryptocurrencies have stopped falling and are trying to start a recovery.

Could bulls maintain the momentum and surmount the respective overhead resistance levels? If they do, which are the top five cryptocurrencies that may lead the rally?

Bitcoin price analysis

Bitcoin has been trading close to the 20-day exponential moving average ($27,233) for the past three days. This suggests that the bulls are buying the dip near $26,500.

Ether’s (ETH) decentralized finance (DeFi) activity has declined in the bear market, and the sector faces further competition from Ethereum’s annual staking reward of 4%, according to Glassnode analysts. However, a DeFi narrative is building around liquid staking derivative (LSD) tokens, which could revive Ethereum’s network activity.

The percentage of gas consumed by DeFi protocols has dropped from 34% in 2020 to between 8% and 16% presently, with nonfungible tokens (NFTs) commanding the maximum share of 25–30%, according to a recent report from Glassnode.

Glassnode’s supply-weighted price index for DeFi, priced in United States dollars and ETH, recorded a 90% loss since early 2021.

The so-called DeFi “blue chips,” which represent a basket of governance tokens from well-known DeFi protocols like Uniswap (UNI), MakerDAO (MKR), Aave (AAVE), Compound (COMP), Balancer (BAL) and SushiSwap (SUSHI), have lost 88% of their market capitalization from all-time highs of $45 billion in May 2021.

DeFi blue chip tokens have underperformed against ETH during bullish market rallies and experienced a more severe drop than ETH “on the downside during the bear.” The analysts predict that since the staking of ETH now yields 4%, it will act as a “new hurdle rate over which token returns must jump.” This yield represents the benchmark rate for Ether investors.

On June 2, the price of Arbitrum jumped alongside the top-ranking cryptocurrencies after the United States Senate voted to raise the debt limit.

Why is the ARB price up today?

The price of Arbitrum (ARB) rose 9% to an intraday high of $1.25, beating the crypto market’s total overall gains of 1.5% in the same period.

Arbitrum’s outperformance coincided with some strange buying activity associated with popular trader Andrew Kang’s crypto addresses.

Notably, on June 2, the Mechanism Capital co-founder deposited $1 million worth of stablecoins into Arbitrum pools and spent over 20% of it buying RDNT, the native token of decentralized finance lending platform Radiant Capital.

Later, Kang exchanged his newly bought and existing RDNT reserves for $867,000 worth of ARB. Then, he deposited the proceeds to Radiant Capital to borrow Circle’s USD Coin (USDC), according to data resource Lookonchain.

Bitcoin “consolidation” could end by July, new research predicts as optimism over a BTC price breakout returns.

In its latest market update on June 2, trading firm QCP Capital revealed a bullish bias on both Bitcoin  (BTC) and the largest altcoin, Ether (ETH).

QCP Capital: Bitcoin consolidation “played out perfectly”

Bitcoin price has been ranging between $26,000 and $31,000 since mid-March, but analysts are increasingly calling time on the sideways action.

QCP Capital is among them, predicting a change of course as soon as the end of the month.

This, it argues, is thanks to the United States debt ceiling “sideshow” vanishing, leaving Bitcoin closely mimicking its consolidation and breakout phase from 2020.

Bitcoin (BTC) bounced near multiple support trend lines into June 2 as market indecision remained in force.

Traders bet on $27,500 BTC price ceiling

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting lows of $26,519 on Bitstamp after the daily close.

The pair showed little signs of a trend change as a stalemate between bulls and bears continued to produce little volatility.

The collection of moving averages (MAs) and the short-term holder (STH) realized price near $26,000, thus staying untested on intraday timeframes.

Analyzing the current setup, popular trader Crypto Ed considered the potential for upside topping out at $27,500.

As the summer season arrives, an unexpected heatwave is gripping financial markets.

This heat is coming in the form of the U.S. Dollar Index (DXY), which has been on a remarkable uptrend since late April, reaching levels unseen since early March’s banking crisis when the dollar wrecking ball wreaked havoc on asset prices.

This surge in the dollar has raised concerns among market participants due to its high inverse relationship with Bitcoin (BTC), a topic many macro and crypto analysts have discussed repeatedly in 2023.

The implication of this inverse correlation means that when the dollar rises, BTC falls and vice versa. The chart below showing the year-to-date performances of DXY (blue line) and BTC (orange line) underscores this relationship a step further.

Notice how Bitcoin’s 2023’s performance has been propelled by a downward dollar. Not coincidentally, the DXY reached its year-to-date low near 100.80 on April 13, nearly the exact date BTC reached its year-to-date high of just over $31,000. Since then, however, both have been trending in opposite directions.

Bitcoin (BTC) returned to a key focal point on June 1 as the monthly close delivered disappointment.

BTC price “fills” latest CME futures gap

Data from Cointelegraph Markets Pro and TradingView confirmed a lackluster end to May for BTC/USD, which slid below $27,000.

The pair erased its entire uptick seen over the weekend, coming full circle to act in a familiar range on the day.

This centered on the area immediately below $27,000, Bitcoin frequently visiting since the middle of April.

In doing so this time around, however, BTC/USD “filled” a gap in CME futures outstanding since the weekend trip higher.

Pepe (PEPE) price has dropped by more than 70% three weeks after establishing its record high of $0.00000449. And the memecoin could fall even more in the coming days, according to a mix of technical and fundamental indicators.

PEPE charts flash a classic bearish reversal pattern

From a technical standpoint, the price of PEPE could drop sharply from its current levels. At the core of this bearish outlook lies the classic head-and-shoulders (H&S) pattern.

Analysts who use technical analysi view the H&S pattern as a bearish reversal indicator for the unversed. It forms when the price forms three peaks atop a common neckline support; the middle peak, called "head," is higher than the other two, called the "left shoulder" and "right shoulder."

The H&S pattern resolves after the price breaks below its neckline. Meanwhile, as a rule of technical analysis, traders measure the pattern's downside target by adding the maximum distance between the head and neckline to the breakdown point.

On May 22, PEPE broke below its H&S neckline near $0.00000156. That puts its downside target near $0.00000041 in June, down around 70% from current price levels.

The cryptocurrency market experienced a dull month, with Bitcoin (BTC) dropping 7.37% — its worst performance since November 2022 — and Ether (ETH) losing 0.22% in May. 

The average loss across the market stands at 5.62% on the last day before the monthly close.

However, some outliers posted impressive gains thanks to popular investment narratives and the growth of the Ethereum staking sector.

In the first half of May, memecoins grabbed headlines, with Pepecoin (PEPE) leading the narrative. The memecoin cycle guzzled up a lot of gas on Ethereum in the first half of May.

PEPE’s market capitalization surged to a peak of $1.54 billion in the first week of May, according to CoinGecko. It has witnessed a sell-off since then, as tokenholders booked profit. However, the token still ended the month with over 300% gains.

Bitcoin (BTC) is in a “transition,” which should pave the way to the next bull market top, new research has concluded.

In the latest edition of its weekly newsletter, “The Week On-Chain,” analytics firm Glassnode unveiled its latest tool for tracking Bitcoin’s resurgence.

Bitcoin hodlers in “transition”

After the 2022 bear market and signs of recovery in Q1 this year, on-chain metrics have undergone a broad transformation, many suggesting that a long-term BTC price bottom is already in.

With price action stagnating since mid-March, however, doubts have returned — along with downside targets that stretch toward $20,000.

For Glassnode analysts, however, Bitcoin’s long-term investor base is already preparing for better times ahead.