The price of Bitcoin, the most popular cryptocurrency, has recovered, rising back up to $27,000 after suffering a large decline brought on by the SEC’s lawsuit against Binance.
The litigation against Binance has created ambiguity in the cryptocurrency market, which has an impact on many digital assets. But Bitcoin has proven resilient and has attracted purchasers, which has contributed to its upward rise.
This Bitcoin price forecast investigates the probable future of the cryptocurrency and looks at the elements affecting its recovery.
The de-dollarization movement throughout the world was covered in a recent research by TD economist Vikram Rai, who also named other currencies that may pose a threat to the US dollar’s hegemony. The euro, central bank digital currencies (CBDCs), and the Chinese yuan were mentioned by Rai as top competitors. Many nations are actively looking for alternatives to the US dollar as a medium of exchange for international commerce and cross-border activities.
Rai also noted that the emergence of digital currencies, especially those produced by central banks, may pose a challenge to the US dollar’s hegemony. He said that the broad adoption of alternative digital currencies may erode the dollar’s standing as a medium of exchange.
The SEC, which operates Binance US, has taken quick action by filing an emergency petition asking for an immediate freeze on assets under the control of BAM Management US Holdings and BAM Trading Services. The SEC emphasized that Binance must provide strong arguments for postponing the issuing of a preliminary injunction.
Investor angst increased after the announcement. Changpeng Zhao, the CEO of Binance, told the market that Binance US was the only entity affected and that other funds or Binance.com were unaffected. This explanation allayed concerns and boosted Bitcoin’s upward trend.
Technically speaking, Bitcoin has risen from $25,400 to be trading at about $26,900. The $27,350 level has proven to be a barrier, and a bearish engulfing candle suggests that selling pressure is intensifying. Moving averages and technical indicators show slight divergence, both of which are in positive area and suggest that there is still buying pressure. To continue moving higher, though, Bitcoin has to surpass the $27,350 mark.
The $27,350 level is anticipated to serve as a turning point in the market today, so traders will be paying careful attention to the price movement there.