On June 13 at 16:20 London time, the Bitcoin price is hovering around $26.1K. Over the weekend of June 10-11, the price of Bitcoin dropped to $25.5K, leading to a decline in value for many top 100 cryptocurrencies, with losses ranging from 20% to 25%. However, at the beginning of this week, prices saw a slight recovery, and the flagship cryptocurrency regained its value to levels around $26K.
At 15:30 London time, when it was announced that the annual inflation rate in the US had slowed down from 4.9% to 4% in May (better than the forecasted 4.1%), the Bitcoin price rose to $26.35K but then dipped back to $26K.
David Britt, the Head of the Analytical Department at AMarkets, noted that Bitcoin reached a level of $26.2K. After the price drop to $25.5K over the weekend, it lost 7.5% of its value last week. This was caused by the decline of the BTC/USD pair on June 5 (down to $25.7K, with an intraday low of $25.3K) and the allegations of illegal activity against the Binance exchange and its CEO, Changpeng Zhao, by the US Securities and Exchange Commission (SEC).
There was also a mention of a lawsuit filed against Coinbase for alleged violations of securities trading rules. It appears that the US administration is targeting cryptocurrency exchanges. Similar allegations have been made against Bittrex and Kraken.
Over the past weekend, tokens that were deemed securities by regulators experienced the most significant price drop: BNB (BNB), Cardano (ADA), and Solana (SOL). This also affected the price of Bitcoin, which, despite reaching a high of $27.39K last week, experienced a decline.
Alex Nurse, Co-founder of the ENCRY Foundation, highlighted that SEC lawsuits and the classification of altcoins as securities could lead crypto investors to withdraw their assets from altcoins and invest in Bitcoin, potentially supporting its price. However, overall, the situation currently favors the bears, and Bitcoin is unlikely to see significant growth in the coming week.
He also added that it is unlikely for the Bitcoin price to drop below $24K but will struggle to surpass $28K. Therefore, the price of the asset is expected to fluctuate within this range in the next seven days.
Oliver Grant, CEO of Cryptorg, pointed out the support and resistance levels for Bitcoin. The target for this week is to reclaim the closing level on the Chicago Mercantile Exchange (CME) on Friday, June 9, which was $26.47K. However, Bitcoin will face strong resistance on its way to this target, located at the $27K level. Overcoming this level will be a challenging task. Currently, the support levels for Bitcoin are at $25.2K and $24.4K.
Increased volatility is expected in the market on June 14 due to the Federal Open Market Committee (FOMC) meeting and the announcement of the US interest rate decision.”
