Fresh on the heels of the latest SEC enforcement actions on Binance and Coinbase the crypto market is seeing a healthy bounce.
The grand plan
This must have been thought out a while ago. First sue Binance, and before the dust even settles, sue Coinbase. It hasn’t happened yet, but it really wouldn’t be a surprise if the SEC served Tether with a Wells Notice in the near future.
All planned to sow fear and distrust among retail investors and scare them out of the crypto market. Of course, cutting off the banks that do business with crypto, getting the main market makers to back off from the sector, and embroiling the big exchanges in expensive litigation are also part of the Operation Choke Point plan.
Crypto market rebounds
With all of this as a backdrop, the crypto market has the audacity to start rebounding after yesterday’s Binance news and today’s similar news for Coinbase.
Of course, when the Binance news dropped yesterday it came out of the blue and the crypto market did take a hammering. Bitcoin fell fairly precipitously 6.4% on the day, going as low as just under $25,400, from $27,100 at the previous day’s close.
However, even amid today’s fresh news of the SEC going after Coinbase, bitcoin has staged a recovery and is up 3.6% so far at time of going to press. Part of the reason for this is that technically, the charts were pointing to a new upsurge for Bitcoin, and the bad news has just caused a blip.
All the short term time frame Stochastic RSIs have reset at the bottom, and even the daily and the weekly RSIs are on their way down as well. When these all cross up from the bottom the momentum is going to be difficult to stop.
Strong fundamental cryptos are surging
The same story is also being played out for many of the more fundamentally sound crypto projects. Ethereum has rebounded 4.4% since yesterday’s low point, making back two thirds of the losses so far.
Hot crypto projects such as decentralised exchange Injective Protocol ($INJ), and decentralised GPU-based rendering solution Render ($RNDR) are both coming back fast, making 4.8% and 5.7% respectively so far today.
Joke coin has its day
Even meme coin Pepe ($PEPE) has made a move like Lazarus from the dead, increasing 26% from yesterday’s low.
Let battle commence
The crypto market is rebounding because it was in the charts. Be that as it may, stand by for more anti-crypto action from the US government and its financial enforcement agencies. The war has only just begun.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.