The bitcoin price is holding above the $29,000 level amid a public spat between the largest US crypto exchange Coinbase and financial regulator SEC.
In late summer 2021, Coinbase was forced to withdraw a launch of the Lend product in the US due to the pressure from the authorities. The situation worsened this year, when in March the regulator sent the exchange a warning about possible lawsuits, and in June the authorities actually sued Coinbase.
According to the charge from the SEC, the Coinbase exchange offers cryptocurrencies that should be considered securities under US law. However, it is unclear which cryptoassets are considered securities by the authorities and which are not.
In any case, bitcoin does not fall under the definition of a security. At the same time, several other crypto assets, including Solana, ADA and MATIC, are mentioned in the lawsuit against Coinbase as securities.
Brian Armstrong, the head of the crypto exchange, said that before the authorities filed the lawsuit, they demanded that trading in all but the most popular and well-known cryptocurrencies be suspended. Coinbase has more than 200 tokens registered in the US. The lawsuit labeled 13 of them as securities.
Now Coinbase is forced to respond to the authorities and the case is now moving to court.
The situation with Coinbase and the SEC may cause short-term instability. Uncertainty about the future of bitcoin and other cryptoassets in the US could lead to less interest in digital currencies and lower their value.
The BTCUSD price is in a narrow downward channel on the H4 timeframe.
The RSI indicator (standard values) shows convergence. This indicates that the formation of downward correction continues.
Sales of the main cryptocurrency should be accompanied by a stop loss placed at a fairly distant level, as the asset rate is in the middle of the descending channel.
Signal:
The short-term outlook for the BTCUSD pair is to sell.
The target is at the level of 28,200.
Part of the profit should be fixed near the level of 28,770.
A Stop-loss should be placed near the level of 30,115.
The bearish trend is of a short-term nature, so it is suggested to limit the trading volume to no more than 2% of your capital.
This content is for informational purposes only and is not intended to be investing advice.
