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Bitcoin drops to $25K after Binance lawsuit

2min Read

Macroeconomic headwinds intensify for BTC as Q2 climax with the Binance lawsuit and FOMC meeting in focus.

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Binances’ legal woes saw BTC plunge to the $25k level.
  • The downswing has cut supply on profit from 69% to 62.5%. 

The US continued to pile regulatory pressure on cryptocurrencies, with Binance Exchange on the radar again. After a previous CFTC filing in March, the US SEC filed 13 new charges on 5 June against Binance – the world’s largest crypto exchange. 

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Bitcoin [BTC] reacted negatively to the development, dropping below $26k and setting a new low in Q2. 

Recent price fluctuations below $27k have seen more BTC transactions in loss as uncertainty makes holders uneasy. At press time, the crypto “Fear and Greed” index was “Fear,” denoting that investors were worried about the market. 

BTC retreats towards 50% Fib level

Source: BTC/USDT on TradingView

A Fibonacci retracement tool (yellow) was placed between the recent swing high ($31k) and the swing low ($19.5k). Since hitting a new high of $31k in mid-April, BTC’s price action has been below a trendline resistance line (white), highlighting the increasing downtrend momentum in Q2. 

The golden pocket of 61.8% Fib level ($26.6k) has been a crucial support from late March. It has been retested several times but eventually cracked on Monday following the Binance lawsuit. 

However, sellers could further dent prevailing bullish sentiment if they clear the hurdle at the 50% Fib level ($25.27k). Below it, likely support levels lay at $23.9k and $22k. 

But bulls could regain leverage if BTC reclaims the golden 61.8% Fib level ($26.6k). Nevertheless, bulls can only push forward and hit $28.5k if they clear the trendline resistance roadblock. The next key resistance level after $28.5k is $29.8k. 

Meanwhile, the OBV has remained eerily stagnant since late March, denoting unchanged and limited trading volumes. Similarly, the RSI edged to the lower ranges, highlighting intensified selling pressure.  

BTC’s supply in profit shredded by 5%

Source: Glassnode

How much are 1,10,100 BTCs worth today

As per Glassnode, the sharp BTC’s drop from $27k to $25k saw the percent of supply in profit decline from 69% to about 62.5%. It’s worth noting that the huge volume of supply in profit made it impossible for BTC to move beyond $28k as the level was a marked profit target. 

It remains to be seen if BTC will inflict a corrective bounce with the focus now on the Binance lawsuit and next week’s FOMC meeting. 


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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