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Bitcoin Rallies Despite Regulatory Hurdles
Bitcoin managed to regain its footing after the Wall Street opening on June 6, notwithstanding fresh legal complications from U.S. regulators. The ongoing rebound of BTC/USD was observed and followed closely by Cointelegraph Markets Pro and TradingView, with the pair reaching $26,250 on Bitstamp.
Bitcoin prices had earlier taken a dip to nearly a three-month low of $25,350, triggered by the news of a lawsuit filed against Coinbase by the U.S. Securities and Exchange Commission.
Allegations Against Coinbase
The press statement accompanying the lawsuit accused Coinbase of functioning as an unauthorized broker, alleging it was "partaking in an unlicensed securities offering via its staking-as-a-service program," starting in 2019.
This action comes in the wake of legal proceedings against Binance, the U.S. division of the biggest cryptocurrency exchange. This lawsuit had a more noticeable impact on cryptocurrency markets.
Experts Weigh In on Market Reactions
“Despite SEC lawsuits, the outflows for 'unregistered securities' on Coinbase remain marginal,” stated Ki Young Ju, the CEO of the analytics platform CryptoQuant, in reference to the aftermath of the Coinbase incident.
Certain traders expressed renewed optimism, suggesting a potential market recovery. "The probability of this news being the bottom of the correction has increased considerably," posited Michaël van de Poppe, the founder and CEO of the trading firm Eight.
CryptoQuant contributing analyst and trader, Maartunn, publicly shared his BTC purchase below the $26,000 mark. "There are numerous potential risks ahead, like the US Government selling bitcoin or a possible recession. However, I believe we have hit the bottom, and the price shouldn't go any lower than $20k,” he tweeted.
Key Price Points According to Traders
Popular trader Skew highlighted the significance of the $26,000 mark in terms of buyer demand in his analysis of the market recovery.
On the other hand, other traders had previously cautioned that a resurgence to the $26,200 range might precede another Bitcoin price correction.
Long-Term Market Optimism
Despite the turbulent market situation, market players maintain a surprisingly optimistic long-term view. The popular trader Moustache, for instance, seems unconvinced about discarding the possibility of a wider market revival in the future.
According to him, BTC/USD experienced only a slight dip in comparison to the potential impact of the SEC lawsuits. “This is all just fearmongering before the real upswing for $BTC starts,” he suggested.
Moustache continues to anticipate a strong rebound in the market, noting various support levels, including the crucial 200-week moving average (MA) at $26,400.
"Perspective is crucial,” Skew reiterated, presenting a multi-month chart with untested support yet to be examined.
