The coin market has shown a lot of activity in the hours since the SEC announced a lawsuit against Binance, the largest cryptocurrency exchange, on June 5. Since then, the coin market has shown some resilience, with Bitcoin gaining 5.3%, bringing its market price to $27,000. The coin earlier broke down from a head-and-shoulder pattern, dropping to $25,351 after news of the SEC’s legal action broke. At the moment, the coin has set sights on the $28k resistance, which it could test in the next 24 hours if the present volume is sustained.
A spike in volume
The coin’s 24-hour volume is currently $20.7 billion. A significant increase from the time prior to the announcement of the SEC charges. The spike in volume on June 6 corresponded with a significant outflow from Binance. It appears that the bulls are more than comfortable supporting the price of BTC at this range, and with the RSI registering 54, we will likely see higher values in the coming hours. How sustainable this is going to be is a different matter.
Possible retraction to $24k
Some analysts, believe that Bitcoin may test the $28k resistance before retracting to $24k. They said that a worst-case scenario would see Bitcoin testing the $19k–$21k region. The Moving Average Convergence/Divergence (MACD) indicator supports this position, as seen from the chart.
The RSI pattern, bouncing off around the value of 60, also supports that the recent Bitcoin bounce will not be sustained, just like the moving average indicator. So the short-term target is the $28k resistance.
Other top gainers
Ethereum is up by 4% in 24 hours, bringing its market price to $1,877. Binance Coin (BNB) gained 2% and is trading at $28, while XRP is up by 3.4%, bringing its market price to $0.5.
Other top coins that have made remarkable gains are Dogecoin (6.5%), Litecoin (3.3%), Avalanche (4.9%), Wrapped Bitcoin (5%), Bitcoin Cash (5%), and Lido DAO (14%).