Binance Regulatory Action Instigates New Bitcoin Price Targets Amid Market Volatility
Summary:
Bitcoin faces new price targets owing to a cascade of liquidations impacting the cryptocurrency market. Regulatory actions by the U.S. Department of Justice against Binance, a major global crypto exchange, have resulted in its CEO, Changpeng Zhao, stepping down. This development led to a drop in the value of BTC. Market instability and fresh BTC price targets are anticipated, with a potential drop to $32,000 referred to as the "max pain" price point. However, despite bearish predictions, stablecoin withdrawals from Binance are not on the rise.
The value of Bitcoin (BTC) is facing new price targets due to a series of liquidations pulling down the cryptocurrency market. This comes after the United States Department of Justice took regulatory action against Binance, the world's largest crypto exchange, poised to receive a substantial fine. Its Chief Executive Officer, Changpeng Zhao, widely known as CZ, is set to leave his position and could possibly face jail time.
The implications of this event, significant for a high-profile figure in the crypto industry, led to a drop in BTC/USD value to $35,600, the lowest since November 16, according to Cointelegraph Markets Pro and TradingView data. However, the value bounced back due to short position closures.
Altcoins took heavier losses, with many major ones remaining down by 3-5% at the point of writing. With market participants preparing for potential instability, several probable BTC price targets have come into focus.
James Van Straten, a research and data analyst at crypto insights company CryptoSlate, suggests the "max pain" BTC price could drop to $32,000, especially in light of a massive options expiry event worth $3.8 billion or 104,000 BTC the day after U.S. Thanksgiving. This event could possibly exacerbate the market's unease.
Van Straten states that a drop to $32,000 would be the most damaging outcome given the current bullish sentiment. He indicates that Bitcoin's bullish thesis would remain valid even if BTC drops to this price.
Material Indicators, a tool for analyzing order book composition and on-chain data, also predicts a possible fall closer to $30,000. They believe order books reveal anxious sellers reducing their asks, but this scenario could change with enough momentum on the bull's side.
CryptoQuant contributor, Gaah, noticed no significant withdrawals from Binance in light of the recent situation, unlike mass withdrawals seen earlier due to regulatory issues related to the exchange. Even with the departure of CZ, Binance's CEO, there's no significant outflow of BTC or Stablecoin.
Note: The views, thoughts, and opinions expressed here are solely the authors’ and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Published At
11/22/2023 1:23:59 PM
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