Coinbase Goes deeper
Updated
Coinbase Shatters Expectations: Here's Everything Investors Need to Know
Trend bearish
bullish breakout has to be confirmed,otherwise it will be a bulltrap
that offers the oppurtunity to sell more the asset
Bearish breakouts often confirmed strongly,the bearish trend continues
Up against the world’s largest crypto exchange (Binance) and the largest publicly-traded crypto company (Coinbase), it’s likely Gensler is in for a fight. Coinbase CEO Brian Armstrong said months ago that the SEC was building its case, and, if it sued, the exchange would counter.
SEC delays its recommendation on Coinbase petition
The SEC told the court, though it hasn’t made a decision on Coinbase’s rulemaking petition yet, it may make a recommendation within 120 days.
The SEC added that until and unless it decides to propose new guidelines, Coinbase must follow current law.
It was only last week that the agency charged Coinbase and Binance with securities violations.
The U.S. Securities and Exchange Commission (SEC) said it hasn’t made a decision on Coinbase’s rulemaking petition yet. However, its staff members think that it will make a recommendation within 120 days, i.e. four months.
The regulator made these remarks while responding to a court order on whether it was taking any action on rulemaking as asked in Coinbase’s petition filed earlier, even as it was suing the crypto exchange for securities violations.
Coinbase alleged in the court that the SEC has decided to reject the petition. The SEC said that this was not the case, though it thinks that it will make a recommendation within a period of 120 days.
The agency also stated that its enforcement action against the crypto trading platform was not in conflict with any regulation decision. Until and unless the SEC decides to propose new guidelines, Coinbase must follow current law, according to the enforcement agency.
On the other hand, the SEC argued that “statements by the Chair do not – and could not – constitute Commission action denying Coinbase’s rulemaking petition.”
Any SEC decision would also need a majority of a quorum vote, the regulator argued.
The SEC charged Coinbase last week, alleging that it was operating as an unregistered securities exchange, broker and clearing agency. A day before its action against Coinbase, SEC charged Binance, world’s leading crypto exchange, with similar allegations.
Trend bearish
bullish breakout has to be confirmed,otherwise it will be a bulltrap
that offers the oppurtunity to sell more the asset
Bearish breakouts often confirmed strongly,the bearish trend continues
Up against the world’s largest crypto exchange (Binance) and the largest publicly-traded crypto company (Coinbase), it’s likely Gensler is in for a fight. Coinbase CEO Brian Armstrong said months ago that the SEC was building its case, and, if it sued, the exchange would counter.
SEC delays its recommendation on Coinbase petition
The SEC told the court, though it hasn’t made a decision on Coinbase’s rulemaking petition yet, it may make a recommendation within 120 days.
The SEC added that until and unless it decides to propose new guidelines, Coinbase must follow current law.
It was only last week that the agency charged Coinbase and Binance with securities violations.
The U.S. Securities and Exchange Commission (SEC) said it hasn’t made a decision on Coinbase’s rulemaking petition yet. However, its staff members think that it will make a recommendation within 120 days, i.e. four months.
The regulator made these remarks while responding to a court order on whether it was taking any action on rulemaking as asked in Coinbase’s petition filed earlier, even as it was suing the crypto exchange for securities violations.
Coinbase alleged in the court that the SEC has decided to reject the petition. The SEC said that this was not the case, though it thinks that it will make a recommendation within a period of 120 days.
The agency also stated that its enforcement action against the crypto trading platform was not in conflict with any regulation decision. Until and unless the SEC decides to propose new guidelines, Coinbase must follow current law, according to the enforcement agency.
On the other hand, the SEC argued that “statements by the Chair do not – and could not – constitute Commission action denying Coinbase’s rulemaking petition.”
Any SEC decision would also need a majority of a quorum vote, the regulator argued.
The SEC charged Coinbase last week, alleging that it was operating as an unregistered securities exchange, broker and clearing agency. A day before its action against Coinbase, SEC charged Binance, world’s leading crypto exchange, with similar allegations.
Note
Note
BTC Bears Target Sub-$26,000 on SEC v Binance and Ripple BattlesBTC was flat this morning, with regulatory uncertainty stemming from the SEC lawsuits against Ripple, Binance, and Coinbase testing buyer appetite.
The market structure and momentum of Bitcoin was bearish, but its bounce back above 26k gave bears some food for thought.
Bitcoin’s correlation with the S&P 500 turned negative over May. This meant that the index has an overall bullish outlook, but Bitcoin has trended in the opposite direction in recent weeks. The increasing hostility from regulatory bodies in the United States has played a part in BTC’s misfortunes on the price chart.
There was an argument to be made that Bitcoin showed some signs of recovery. Yet, an analysis of the price action showed that the bias remained in favor of the sellers. On the other hand, if Bitcoin climbs to 28k, it could signal an uptrend.
Can the bulls drive Bitcoin past 27.4k next?
The market structure of Bitcoin on the daily timeframe was bearish. The structure shifted on 21 April when BTC dipped below a recent higher low. Since then, the price has trended lower on the chart.
Moreover, the trading volume has been extremely low from April onward, compared to the volume seen in February and March. This was reflected on the OBV as well, which only went slightly lower in May in contrast to the rapid gains it posted in mid-March.
The Fibonacci levels based on the recent leg down show that Bitcoin was likely headed toward 24.8k. The 61.8% extension level at 23.3k was also a target it presented. The price action showed that the 24.2k-24.4k region could serve as strong support. Beneath that, the 22.4k and 21.5k levels were important.
To signal a bullish shift in the structure, Bitcoin prices must rise back above the recent lower high at 27.4k. Yet, an uptrend would not be established there, as BTC would need to form a higher low and continue higher. Cautious investors can wait for this turn of events before looking to buy.
On Saturday, BTC extended the winning streak to three sessions, gaining 0.67% to end the day at $26,535.
SEC v Binance news delivered a breakout morning session before profit-taking left BTC with modest gains.
The technical indicators turned bullish, signaling a return to $27,000.
On Saturday, bitcoin (BTC) gained 0.67%. Following a 2.92% rally on Friday, BTC ended the day at $26,535. Significantly, BTC enjoyed its first three-day winning streak since May.
A mixed start to the day saw BTC fall to an early afternoon low of $26,202. Steering clear of the First Major Support Level (S1) at $25,523, BTC rose to a late morning high of $26,857. However, falling short of the First Major Resistance Level (R1) at $26,882, BTC eased back to sub-$26,500 and a range-bound afternoon session.
SEC v Binance News Delivered Brief Relief
On Saturday, news of Binance striking a deal to address the SEC’s motion to freeze Binance US assets supported a breakout morning.
Binance, Binance US, and the SEC agreed on a deal restricting access to customer funds to Binance US employees. The agreement prevents Binance Holdings staff from having access to private keys for US wallets.
The SEC filed a motion to freeze the assets of Binance US shortly after filing charges against Binance, Binance US, and Binance CEO CZ.
On Saturday, the US Court signed off on the deal, which allows Binance to repatriate all US customer funds and private keys onshore to nullify the motion to freeze.
While the news was positive, Binance US and Binance face charges that could drag on and further impact the US digital asset space.
Uncertainty toward the SEC v Ripple case remains another headwind, with optimism of a Ripple win fading after the release of the Hinman speech-related docs.
The Day Ahead
It is a quiet Sunday session, with no US economic indicators to provide direction. The lack of external market forces will leave BTC in the hands of the crypto market news wires.
SEC activity remains the focal point, with SEC v Ripple, Binance, and Coinbase (COIN)-related news likely to move the dial.
We also expect market sensitivity to lawmaker chatter. US lawmakers have remained silent on the William Hinman speech-related documents and the SEC charges against Binance and Coinbase.
Bitcoin (BTC) Price Action
This morning, BTC was down 0.05% to $26,523. A mixed start to the day saw BTC rise to an early high of $26,551 before falling to a low of $26,410.
BTC Technical Indicators
Looking at the EMAs and the 4-hourly candlestick chart (below), the EMAs sent bullish signals. BTC sat above the 100-day EMA ($26,269). The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, sending bullish signals.
A move through the 200-day EMA ($26,654) would support a breakout from R1 ($26,861) to target R2 ($27,186). However, a fall through the 100-day EMA ($26,269) and S1 ($26,206) would bring the 50-day EMA ($26,059) into view. A fall through the 50-day EMA would send a bearish signal.
Resistance & Support Levels
R1 – $ 26,861 S1 – $ 26,206
R2 – $ 27,186 S2 – $ 25,876
R3 – $ 27,841 S3 – $ 25,221
BTC needs to move through the $26,531 pivot to target the First Major Resistance Level (R1) at $26,861 and $27,500. A move through the Saturday high of $26,857 would signal an extended bullish session. The crypto news wires should be crypto-friendly to support an extended rally.
In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $27,186 and resistance at $27,500. The Third Major Resistance Level (R3) sits at $27,841.
Failure to move through the pivot would leave the First Major Support Level (S1) at $26,206 in play. However, barring a risk-off-fueled sell-off, BTC should avoid sub-$26,000 and the Second Major Support Level (S2) at $25,876. The Third Major Support Level (S3) sits at $25,221.
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