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Bitcoin (BTC) Declined Below The $26K Mark as SEC Unveiled A Lawsuit Against Binance

●BTC price liquidation exceeded $100M following the lawsuit against Binance filed by the Security Exchange Commission.
●The price dropped to $25,389 following the bearish breakout of the support at $27,000.
●Bitcoin may enter a long-term downtrend if the support near $25,000 is broken following the current bearish momentum.

Bitcoin has maintained a constrained price range between $26,300 and $28,500 for about a month. However, price movements that have crossed the range have lacked the essential force to produce a meaningful trend reversal.

Technically, BTC is coming out of the current consolidation period following a strong bearish breakout at the previous support near $27,000 on June 5, 2023. During this period, the price has also broken the 100 EMA support at $26,400, indicating a potential bearish trend reversal.

At present, Bitcoin is trading around $25,500, close to the long-term support at $25,000. If this level is broken, the price may retest several support levels at $23,500 and $24,000. Although these support zone may turn weak and let BTC slip towards $21K because a drop below $25K will indicate a strong long-term bearish trend signal.

Furthermore, the relative strength index (RSI) value dropped below the 14-day signal moving average and currently roaming around 37.09, suggesting a strong bearish momentum. However, we’ll also watch if Bitcoin plots a pullback after the RSI hits the oversold zone near the 30-level.

Based on the current chart on the daily timeframe, technical traders will be more interested in going short on potential pullbacks near the immediate resistance at $27,000 with the expectation of BTC breaking the critical support at $25K.

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