Bitcoin price avoids 3-month lows as liquid crypto dives $390 million

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Bitcoin (BTC) defied three-month lows through June 10, with altcoins in particular feeling the heat of regulatory pressure from the United States.

BTC/USD 1 hour candle chart on Bitstamp. Source: TradingViewAltcoin Bloodbath as Exchanges Reshape the Landscape

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD hit $25,483 on the day, down more than $1,200 from the previous days high.

While showing weakness, Bitcoin was spared the fate of major altcoins, which reacted strongly to the delisting that accompanied US legal action against major exchanges.

Trading app Robinhood has announced that it will drop support for several cryptocurrencies named in the lawsuit against Binance and Coinbase by the United States Securities and Exchange Commission (SEC).

These then hemorrhaged, with Cardano (ADA) and Solana (SOL) falling nearly 25% in 24 hours at the time of writing.

We regularly review the crypto we offer on Robinhood, the company said on its website.

Based on our latest review, we have decided to end support for Cardano (ADA), Polygon (MATIC) and Solana (SOL) on June 27, 2023 at 6:59 PM ET.ADA/USD 1-day candlestick chart (Coinbase). Source: Trading View

As expected, following this week’s action on the regulatory front, we saw delistings causing the market to sell off, responded Crypto.com CEO Kris Marszalek.

Guess this is the time they fight you on the crypto adoption curve. Make no mistake: the crypto industry will get through this and emerge stronger than ever.

Crypto.com has confirmed that it will shut down its US institutional trading service from June 21.

200-Week BTC Price Trendline Support Fails

The events have had a major impact on the overall cryptocurrency market capitalization, with Michal van de Poppe, founder and CEO of trading firm Eight, warning that worse may be yet to come.

Related: Bitcoin and Ethereum to get rid of toothless SEC adversary as FOMC looms

Similar to BTC/USD, if the total crypto market capitalization tally loses its 200-week moving average (MA), this would be a clear bearish signal. The Bitcoin moving average trendline is currently near $26,400.

It’s not the weekly candle you’d want to see on Crypto’s total market cap, he told Twitter followers alongside a chart.

The loss of the 200-week MA calls for a continuation downtrend. Annotated crypto market cap chart. Source: Michal van de Poppe/Twitter

Van de Poppe, like some other popular traders, nevertheless showed interest in buying altcoins at lower prices.

Accompanying was Crypto Tony, who predicted incredible entries on the table for 2023.

For existing traders, however, the damage was long overdue, with liquidations totaling $320 million for June 10, according to data from CoinGlass, with the day not yet over.

Another $70 million in short positions also evaporated.

Crypto liquidation chart (screenshot). Source: CoinGlass

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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