The largest cryptocurrency, Bitcoin has remained relatively stable amid a revamped market-wide crackdown by the United States Securities and Exchange Commission (SEC). In addition to holding support at above $25,000, Bitcoin price sits above the critical 200-day Exponential Moving Average (EMA), as observed on the daily timeframe chart.
According to Chinese reporter, Wu Blockchain “With the recent plummet of altcoins and the relative stability of Bitcoin, the market share of Bitcoin has been close to 50% recently, setting a new high since April 2021.”
Historical data shows that the bear markets of 2018 and 2022 saw the BTC market share rise above 50% for an extended period, to the extent of reaching 69%.
According to Tradingview, with the recent plummet of altcoins and the relative stability of Bitcoin, the market share of Bitcoin has been close to 50% recently, setting a new high since April 2021.
During the bear market period from 2018 to 2022, the Bitcoin market share has…
— Wu Blockchain (@WuBlockchain) June 12, 2023
While this stability is commendable for an asset class considered extremely volatile, it may come at a cost, especially if the current support at $25,000 weakens. In other words, bulls have an uphill battle to uphold the support reinforced by the 200-day EMA (in purple) to avoid a plausible dip to $24,000 in search of fresh liquidity.
Altcoins Wobble as the SEC Crackdown Intensifies
The US SEC revamped its market-wide crackdown, going after Binance and Coinbase in separate lawsuits. The legal actions which crypto experts are referring to as politically instigated, with the SEC saying “we don’t need more digital currency,” could take years to resolve.
However, the SEC wants to assert its power in the industry with claims that Binance sold unregistered securities, not to mention commingling customer funds.
In another high-flying case, the SEC cast a wider net, alleging that the majority of assets traded on the US-based exchange are unregistered securities. The allegations implicated tokens like Solana (SOL) Polygon (MATIC) and Algorand (ALGO) among others.
As most of the cryptos the SEC listed as securities struggle to find a new footing in the market, including, Cardano (ADA), and Filecoin (FIL), Bitcoin price exhibits commendable stability.
The nail sunk deeper in the altcoins’ boat when trading app Robinhood said on Friday that investors will no longer buy and sell ADA, MATIC, and SOL on the platform. ADA is trading 27% down in the last seven days, MATIC 29%, and SOL 3.7%, according to price data by CoinGecko.
Since SOL was listed as a security by the SEC, there was voice in the community to fork Solana to get rid of SEC problems, and the idea was supported by Abracadabra founder HGEABC. Overall, the community has mixed opinions about the fork, and supporters have not an actual fork…
— Wu Blockchain (@WuBlockchain) June 12, 2023
Bitcoin Price Is Stable But Traders Should Watch Out for These Level
Bitcoin price is trading slightly above $25,800 on Monday ahead of the European session. Its immediate downside is supported by a confluence formed by an ascending trend line and the 200-day EMA.
Upholding the confluence support would be a daunting task for the bulls. However, if this support is lost, investors may start to acclimatize to extended declines eyeing lower levels like $24,000, $22,000, and $20,000.
Based on the Moving Average Convergence Divergence (MACD) bears have the upper hand—a situation calling for a more aggressive approach from the bulls.
The Relative Strength Index (RSI) affirms the same bearish outlook for BTC with declines likely to extend this week. However, traders cannot rule out the possibility of Bitcoin price rebounding from the 200-day EMA and closing the gap to $30,000.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
