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Low Liquidity And Regulatory Pressure Cause Bitcoin To Fall

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Bitcoin price dropped to $26,200 as the market went against declining risky asset prices.

Trading at two-week lows, the leading cryptocurrency lost a tenth of its value this week.

Significant crypto assets like Bitcoin’s liquidity seem to be “very thin.”

Market indicators are unable to identify a specific cause for the weakening.

However, there are worries that a drop in institutional market makers’ participation may increase price volatility.

The situation has prompted mid-to-larger bids to stomp the market, causing it to fall.

READ ALSO: Capital Connect: Binance VIP & Institutional New Launch

Recently, major exchanges, including Binance, have experienced a fall in liquidity or market depth.

And it makes it more challenging for traders to fill big orders without affecting prices.

On technical charts, a bearish head-and-shoulders reversal pattern has been verified, according to experts, as a result of Bitcoin’s decline to two-month lows.

This breakdown makes way for more drops to support levels around $25,000.

Backstory

There was a failed breakout attempt In April, and the price was holding steady under the $30,000 resistance level.

The 50-day moving average has broken at $28,000 because of the recent downward pressure.

The next potential objective might be the $25,000 support region, followed by the next significant 200-day moving average close to $22,000.

Both are important, and a decline below them would be devastating for purchasers who are in an uptrend.

However, a further breakout over the 50-day moving average would probably prevent the downside scenario, which will likely cause the price to go beyond $30,000.

READ ALSO: SEC Subpoena’s Marathon Digital A Second Time

At the regulatory level, a well-known Bitcoin mining company, Marathon Digital, has been held by the Securities and Exchange Commission (SEC).

SEC suspects its breaches of securities rules that have increased pressure on the cryptocurrency market.

As part of an ongoing investigation into a data center in Montana, the SEC has subpoenaed the  Marathon Digital Holdings.

The SEC has issued a subpoena to Marathon Digital, the second-largest publicly traded Bitcoin miner in the United States, requesting records and information on its activities.

Marathon has stated its desire to assist with the SEC’s inquiry.

Bitcoin is the most decentralized and robust of all the crypto assets.

But considering what happened when China entirely outlawed cryptocurrency trade.

China currently produces the second-highest hash power in the world after the mining industry went offshore.

What to expect and what you should be aware of soon

It’s unlikely that the banking crisis will end soon, and it may even worsen.

The raging conflict between Russia and Ukraine and the US economy poses critical risks for the remainder of this year and 2024.

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