Bitcoin and major altcoins appear vulnerable to a deeper correction after the Paxos crackdown soured crypto market sentiment.


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and some altcoins threaten to deepen their correction after reports emerged that the US Securities and Exchange Commission (SEC) issued a notice from Wells to Paxos, claiming Binance USD pegged to the dollar

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Stablecoin is an unregistered security. Additionally, the New York City Department of Financial Services (NYDFS) ordered Paxos to stop issuing BUSD.

Following last week’s crackdown on Kraken and now Paxos, the regulator’s actions could add to jitters among crypto investors. FOX Business journalist Eleanor Terrett tweeted on February 12 that “I was told there would be more posts from Wells in the next 2-3 weeks.”

Volatility may remain high in the near term as market watchers await the CPI release on February 14. Interestingly, Bitcoin showed a golden cross on the daily chart and a death cross on the weekly chart.

This suggests that the medium-term trend is still negative, but the short-term trend may indicate a reversal. Let’s examine the charts to find critical support and resistance levels to pay attention to.

The S&P 500 (SPX) turned down from 4,200 on February 2 and hit the 20-day exponential moving average (4,057) on February 10. This is an important level that the bulls need to defend if they want to sustain the rally. .

The 20 day EMA is gradually rising and the Relative Strength Index (RSI) is in the positive territory, indicating a slight advantage for buyers. The bulls will try to push the price towards the overhead resistance at 4200.

This is an important level to watch because if the bulls break above this resistance, the index could rally to 4300 and then 4500.

If the bears want to gain an advantage, they will have to push the index below the 20 day EMA. This can take the index to the uptrend line.

The US Dollar Index (DXY) turned down from the resistance line on February 7, but the bears failed to push the price below the 20-day EMA (103). This implies a shift in sentiment from selling on the ups to buying on the downs.

The 20 day EMA turned up and the RSI moved into positive territory, which suggests that the bulls are making a comeback. If the price breaks out and sustains above the resistance line, the short-term trend may turn positive. The index can then start to move north to 106 and then to 108.

Instead, if the price turns down from the current level and breaks out of the 20 day EMA, this would mean that the index could extend its stay inside the wedge pattern for a few more days.

Bitcoin/US dollar
Bitcoin’s rally attempt failed at $22,090 on Feb. 12, indicating that the bears are selling every minor advance and are not waiting for the price to reach the 20-day EMA ($22,241).

This increases the probability of a break below $21,480. A sloping 20 day EMA and RSI in the negative zone indicate that the path of least resistance is bearish. The next support is the 50-day simple moving average ($20,439).

If the price bounces off this support, the bulls will try to push the BTC/USDT pair above $21,480 and attack the 20-day EMA. Buyers will have to clear this hurdle to take control and open the doors for a potential rally to $23,500.


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trying to find equilibrium at the $1,500 support level. The 20-day EMA ($1,567) has turned down and the RSI is in the negative territory, indicating that the bears have the upper hand.

If the 50-day SMA ($1,483) fails to stop the decline, the selling could rise and ETH/USDT could drop to solid support at $1,352. This level may attract aggressive buying by the bulls. If the price bounces, the pair may fluctuate between $1,352 and $1,680 for some time.

Another possibility is that the price can rally from the 50-day SMA and break above the 20-day EMA. The pair could then rally to $1,680, which remains a key level for the bulls to break through.


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Facing a rejection of $318 on Feb 12, indicating that the bears are selling on the rally. The bears will try to further strengthen their positions by dragging the price below the strong support at $280.

The 20-day EMA ($310) has started to turn down and the RSI is in the negative territory, indicating that the bears have the upper hand. If the $280 level collapses, the BNB/USD pair

Source: CoinTelegraph