• The SEC’s crackdown on Kraken has caused a shock in the crypto sector.
• Traders are wondering if the correction is a buy-the-dip opportunity or a sign of worse things to come.
• Former BitMEX CEO Arthur Hayes suggests that Bitcoin may continue its bull run in the first half of the year, but altcoins should be timed properly.
SEC Crackdown on Kraken
The United States Securities and Exchange Commission (SEC) chair Gary Gensler recently explained why the regulator had cracked down on Kraken cryptocurrency exchange, forcing it to stop its crypto staking program for U.S. clients. This news sent shockwaves through the crypto sector and led to an aggressive selloff across the board with Bitcoin crashing about 5%, as well as several altcoins following suit.
Buy The Dip Opportunity?
Traders are now wondering whether this week’s correction is a buy-the-dip opportunity or a sign of worse things to come. Former BitMEX CEO Arthur Hayes believes that Bitcoin may continue its bull run in the first half of 2021, but there could be challenges towards the latter part of the year, and timing altcoins correctly will be key to success.
Important Support Levels To Watch For
In order to identify important support levels for cryptocurrencies like Bitcoin and altcoins, we can study their daily technical charts for insight. In regards to Bitcoin, selling pressure has caused it to fall below $22,800 support level and plunge towards strong support near $21,480 which suggests that further correction could occur before any rebound takes place. If BTC falls below $21,480, then further selling could ensue and push prices down towards moving averages which have completed a golden cross – however bulls need to flip 200 day simple moving average ($19,722) into support if they wish for this rally to remain intact.
For Ethereum (ETH), buyers will attempt to defend $1,550 while Litecoin (LTC) needs buyers at $135 as it faces stiff resistance near $145. Binance Coin (BNB) must hold above $160 while Dogecoin (DOGE) is likely headed lower due confirmed breakdown from Symmetrical Triangle pattern along with bearish divergence on RSI suggesting potential pullback/correction ahead.. Other coins such as XRP ($0.45), ADA ($0.38), Matic Network (MATIC -$1), Polkadot (DOT -$30), Avalanche (AVAX -$23) also face similar downward pressure – meaning investors should wait until correction ends before considering fresh purchases again..
The SEC’s crackdown on Kraken has certainly rattled crypto investors which resulted in broad selloff across cryptocurrencies during past few days – however most analysts still believe current dip should be interpreted as buying opportunity rather than start new bear market given fact that January saw strong rally across market.. Until bottom is confirmed though investors should remain cautious & look out for important levels mentioned above before deciding when best time make investments into cryptos again!