• Binance and CEO Changpeng Zhao was sued by US SEC for securities law violations. 
  • BTC dropped below $26k as BNB fell below $300

Bitcoin traders were put in a fix on Monday following the news of the US SEC suing Binance Exchange and CEO Chanpeng Zhao. 

The US SEC alleged that CZ and Binance attracted US customers into its unregulated international exchange while co-mingling investors’ funds with its own. The SEC filed 13 charges against the world’s largest cryptocurrency exchange. 

CZ reacted on Twitter, dismissing the allegations and assuring investors that the Binance team was on standby to ensure a smooth running of systems. In addition, CZ opined that they would respond accordingly once they received the charges officially. 

Although notable crypto figures like Justin Sun, founder of Tron, threw his weight behind CZ, BTC reacted wildly to the news. Within hours, the king coin dropped below $26k, painting the whole altcoin market in the red. 

BTC breaches a key Moving Average

Source: BTC/USDT on TradingView

BTC dropped below the 111-MA (Moving Average), key dynamic support in the past few weeks. A breach below the confluence area of trendline support (blue) and the $25k support level will flip BTC’s structure to a long-term downtrend momentum. 

On the upside, bulls must clear the trendline resistance (white) to gain the upper hand.  As such, current BTC’s price action puts it in a constricting spot with a potential break-up or down scenario that could adversely affect traders. 

Binance Coin [BNB] didn’t have it smooth either. It breached below the $300 psychological level after the news. It inflicted a bearish breakout from its ascending channel and hit March swing low at press time. 

Source: BNB/USDT on TradingView

 

Over $100 million long positions wrecked

Source: Coinglass

Over $105 million worth of BTC long positions were liquidated in the past 12 hours as of press time. This denotes a massive bull trap and overbearing bearish pressure following the distressing news.