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BTC Faces Downside Risks and a Return to Sub-$25,000 on SEC Moves
On Wednesday, BTC fell back into the negative as investor resiliency was put to the test by the increase in SEC activity. Probably a rough day lies ahead.
3.21% less people bought bitcoin (BTC) on Wednesday. BTC finished the day at $26,360, partially reversing a Tuesday gain of 5.84%. Notably, BTC missed the $27,500 handle for the seventh session in a row.
BTC increased to a first-hour high of $27,393 despite the day's rocky start. The First Major Resistance Level (R1), which is set at $27,955, was not reached, and BTC dropped to a late-session low of $26,157. BTC found late support to end the day at $26,360, avoiding the First Major Support Level (S1) at $25,921.
Taking less risk and SEC hits The larger crypto market and BTC
With economic statistics from China and the US challenging buyer appetite, it was a busy session on Wednesday.
In May, China's USD trade surplus decreased from $90.21 billion to $65.81 billion, falling short of the $71.60 billion estimate. Significantly, imports fell by 4.5% while exports fell by 7.5% year over year. Analysts predict an 8.0% increase in exports and an 8.0% decrease in imports.
Indicators of the US economy also fell short. In April, the US trade deficit increased from $60.60 billion to $74.60 billion, exceeding the predicted deficit of $75.20 billion. In April, imports rose while exports fell, causing the US trade deficit to reach a six-month high.
The FOMC was in the pre-FOMC meeting blackout period, thus there was no response from the Fed.
The pessimistic attitude was heightened by the NASDAQ Composite Index's 1.29% drop at day's end. The NASDAQ mini was flat this morning.
The pullback was influenced by reports that, in reaction to the SEC filing to freeze Binance US assets, Binance US had delisted trading pairs and halted OTC trading.
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