Bitcoin slips below $26,000 as risk sentiment sinks

Most major cryptocurrency prices slipped on Monday, as a risk aversion sentiment prevailed. Crypto bulls and bears are wrestling for control, causing volatility in cryptocurrency prices. The Securities and Exchange Commission filed 13 charges against Binance and its CEO, Changpeng Zhao. Reports that the US regulator is formally moving against Binance put pressure on crypto markets last week, causing volatility in cryptocurrency prices. 

Bitcoin traded below $26,000 on Monday. If the BTC price declines, support can be found near $25,400, while resistance may be encountered near $27,400. 

Ethereum price also weakened on Monday, dropping below the $1,750 level. If Ethereum's price declines, it may encounter support near $1,720; if it increases, resistance may be encountered at $1,900.

Risk sentiment is volatile ahead of key events this week. US CPI data for May are scheduled to be released on Tuesday, just a day before the Fed’s rate decision. The U.S. Federal Reserve is holding its next policy meeting this Wednesday, June 14th. Markets are pricing in an 80% chance that the Fed will not raise interest rates at its meeting this week. A pause in the Fed’s rate hikes this week may boost risk assets. The ECB and BOJ policy meetings this week on Thursday and Friday respectively, may also affect risk assets.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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