Bitcoin drops to $46K, altcoins sell off as report claims Binance is under investigation
May 13, 2021. Summarized by summa-bot.
Compression ratio: 45.3%. 1 min read.
News that Binance could be under investigation by the U.S. Justice Department and IRS triggered a marketwide sell-off that saw Bitcoin's price drop to $46,000.
Initially, it was Tesla’s May 12 announcement that it would stop accepting Bitcoin as payment over environmental concerns, along with technical weakness and a nearly complete head-and-shoulders technical pattern, that pushed BTC's price down to $46,000.
While the investigation is unconfirmed at this moment, as the news broke, Bitcoin's price quickly dropped by more than $3,000 and currently trades at $47,300.
From the viewpoint of technical analysis, the bearish head-and-shoulders pattern is now confirmed, and barring a bounce off the 61. 8% Fibonacci retracement level at $42,600, traders may look for BTC's price to restest the $40,000 level as support.
Bitcoin's price may be revisiting multimonth lows, but a quick glance through Crypto Twitter shows that most traders view the current pullback as a "buy the dip" opportunity, including Micheal Saylor, who on May 13 tweeted that MicroStrategy bought another 271 BTC at an average price of $55,387.
MicroStrategy has purchased an additional 271 bitcoins for $15. 0 million in cash at an average price of ~$55,387 per #bitcoin.