Cold feet reigns across crypto markets once again as Bitcoin bulls lose steam and Ethereum drops 15% in two days.
Bitcoin (BTC) fell to $21,000 on July 26 after it emerged that major United States cryptocurrency exchange Coinbase was under investigation.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
$21,000 now “super critical” for BTC bulls
The U.S. Securities and Exchange Commission, Bloomberg originally reported, was looking into whether the exchange had allowed users to trade unregistered securities.
Part of a wider battle between the U.S. crypto industry and regulators over compliance, the move appeared to frighten the market, coming amid parallel allegations that a former executive conducted insider trading.
Ironic the peak euphoric events of the Bull Market were Tesla buying #Bitcoin and Coinbase IPO’ing on the Stock Exchange
Now in the last week Tesla has sold and Coinbase is under investigation by the SEC
With that, Bitcoin was back to defending $21,000 as support on the day, with commentator Mark Cullen stressing that the level must hold for bulls to stay in control.
“The 21k level for BTC is super critical for the bulls to hold if they have any hope of this regaining a bullish posture,” he told Twitter followers.
Trader Crypto Tony eyed a slightly lower level as a short-term floor, warning that a “drop deeper” was nonetheless a likely future outcome.
$20,700 is my target on this drop, following my chart yesterday. Looking for at least another drop to that level, but i do think we drop deeper !! pic.twitter.com/WXYUCWZm6O
For its part, Coinbase had been anything but passive in the U.S. regulatory debate, last week releasing a dedicated blog post on why the SEC should change course.
“If the Commission starts an open process where all of us can provide input, we look forward to sharing our thoughts on how to answer the important questions our petition raises, and we would encourage others to do the same,” chief policy officer Faryar Shirzad wrote.
Coinbase shares were down 3.7% pre-market, adding to 5.3% losses the previous day.
Trader warns Ethereum could “take out lows” next
ETH/USD, previously the best performer in the July crypto market rebound, traded at just over $1,400 at the time of writing. Versus its peak on July 24, the pair was down 15%.
ETH/USD 1-hour candle chart (Binance). Source: TradingView
On July 25, TraderSZ warned that Ethereum and Bitcoin could both soon challenge lows, the latter aiming for $18,500.
i dont like the way ethusd looks…i think even if it wants to go higher, makes more sense to take out the lows…which means btc could squeeze lower. going to cut my btc long. if it is low, il get back in higher up after low is in https://t.co/u6sFHpzPH1 pic.twitter.com/6BbfmB6VRY
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