While BTC managed to recover a few hundred dollars after the initial slump, it still remains in the red
After trading sideways for the past few days, Bitcoin lost steam and remained below the $30,000 mark.
This reflects the general crypto market which faced additional downward pressure after report that Binance may be charged for fraud.
Bitcoin trades below critical psychological mark
In the early hours of Wednesday, Bitcoin briefly traded above $30,000. This was short-lived as the pioneer cryptocurrency pulled back and settled at $29,153 at press time.
In the past few days, the crypto market had enjoyed relative calm as Bitcoin ranged between $29,000 and $29,500, with $29,000 acting as resistance.
Just as the Asian trading time began, the benchmark coin slumped $1,000 dropping below $28,750 on Bitstamp.
In mid-July, Bitcoin attempted to break the significant resistance of $30k but failed and the price fell toward the 100-day moving average. It’s expected that if the price climbs above the $30,000 mark, it may trigger a bullish rally.
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Drop caused by possible Binance’s fraud charge
Bitcoin drop today has been linked with reports that the US Department of Justice (DOJ) is considering fraud charges against the world’s largest crypto exchange, Binance.
However, Federal prosecutors have shown concerns about the aftermath of such charges. There is the possibility of a domino effect that may cause exchanges to fall and investors to lose money.
Despite the current market outlook, many investors and traders are optimistic about the potential of a long-term recovery for the battle-tested crypto market. A DOJ charge may cause a more extended bearish trend.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.