BTC Bears in the Driving Seat with Sub-$26,000 the Near-Term Target

Bob Mason
Published: Jun 10, 2023, 02:25 GMT+00:00

BTC was back in the red this morning, with the SEC crackdown on cryptos and Binance response to the move an ominous sign for the US digital asset space.

BTC technical analysis - FX Empire

In this article:

Key Insights:

  • On Friday, BTC slipped by 0.09% to end the day at $26,502.
  • Binance news continued to grip the crypto news wires following the SEC filings.
  • The technical indicators remained bearish, signaling a return to sub-$26,000.

On Friday, bitcoin (BTC) slipped by 0.09%. Partially reversing a 0.63% gain from Thursday, BTC ended the day at $26,502. Significantly, BTC fell short of the $27,000 handle for the second time since May 27.

A choppy start to the day saw BTC fall to an early morning low of $26,302. Steering clear of the First Major Support Level (S1) at $26,228, BTC rose to a mid-afternoon high of $26,804. However, falling short of the First Major Resistance Level (R1) at $26,835, BTC eased back to end the day at $26,502.

Binance News Continued to Test Buyer Appetite

It was a quiet Friday on the US economic calendar. There were no US economic indicators for investors to consider, leaving the crypto news wires to influence.

News of Binance US planning to halt dollar withdrawals and removing the option to deposit US dollars weighed on investor sentiment. However, Binance US announced it would temporarily be a crypto-only exchange, which calmed the markets.

While Binance US-related news was the focal point, news of Robinhood (HOOD) delisting cardano (ADA), polygon (MATIC), and solana (SOL) added to the bearish mood.

The Day Ahead

It is a quiet Saturday session. With no US economic indicators for investors to consider, the crypto news wires will continue to provide direction.

SEC activity, updates from the SEC v Ripple, SEC v Binance, and SEC v Coinbase (COIN) cases, and respective platforms and US lawmaker chatter will need tracking.

Bitcoin (BTC) Price Action

This morning, BTC was down 0.27% to $26,430. A mixed start to the day saw BTC rise to an early high of $26,556 before falling to a low of $26,342.

BTC sees early red.
BTCUSD 100623 Daily Chart

BTC Technical Indicators

Resistance & Support Levels

R1 – $ 26,770 S1 – $ 26,268
R2 – $ 27,038 S2 – $ 26,034
R3 – $ 27,540 S3 – $ 25,532

BTC needs to move through the $26,536 pivot to target the First Major Resistance Level (R1) at $26,770 and the Friday high of $26,804. A move through the morning high of $26,556 would signal an extended bullish session. The crypto news wires should be crypto-friendly to support an extended rally.

In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $27,038 and resistance at $27,500. The Third Major Resistance Level (R3) sits at $27,540.

Failure to move through the pivot would leave the First Major Support Level (S1) at $26,268 in play. However, barring an event-fueled sell-off, BTC should avoid sub-$26,000. The Second Major Support Level (S2) at $26,034 should limit the downside. The Third Major Support Level (S3) sits at $25,532.

BTC support levels in play below the pivot.
BTCUSD 100623 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), the EMAs sent bearish signals. BTC sat below the 50-day EMA ($26,676). The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA, sending bearish signals.

A move through the 50-day EMA ($26,676) would support a breakout from R1 ($26,770) and the 100-day EMA ($26,853) to give the bulls a run at R2 ($27,038) and the 200-day EMA ($27,126). However, failure to move through the 50-day EMA ($26,676) would leave S1 ($26,268) in view. A move through the 50-day EMA would send a bullish signal.

EMAs are bearish.
BTCUSD 100623 4 Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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