Since the start of the week, the big talk in the cryptocurrency market has been about Binance and its CEO, Changpeng Zhao. On Tuesday, the U.S. Securities Exchange Commission announced that the CEO of the largest crypto exchange in the world pleaded guilty to a federal charge involving money laundering. Simultaneously, Binance admitted that it had not implemented proper measures to prevent illicit activities on its platform. As a result, Changpeng Zhao stepped down from the role of CEO, and the exchange was fined $4.3 billion (meanwhile, Changpeng Zhao was fined $50 million). This is certainly not the best news for the exchange, which is still being investigated by the SEC in another separate case and by a regulator in France (for money laundering).
Furthermore, when going back to about a year ago, when SquawkBox anchor Rebecca Quick asked Changpeng Zhao whether Binance could withstand a $2 billion fine, Changpeng Zhao’s response, “We are financially strong,” did not sound very reassuring. Now, with the fine being double the number mentioned in the interview (and more fines likely in the coming months), Binance or Binance.US is starting to look like an increasingly dangerous place to hold digital assets. On top of the multiple questionable developments we mentioned in the past month or so, Binance’s settlement is yet another concerning occurrence in the crypto market. Therefore, we find no reason to chase the market, and instead, we prefer to stay on the sidelines until the forecasting clarity improves (or until an attractive setup emerges).
Illustration 1.01
Illustration 1.01 shows the 90-minute chart of BTCUSD, which can be seen trading within the upward-sloping channel. A breakout below the lower bound will be bearish while a breakout above the upper bound will be bullish.
Technical analysis gauge
Daily time frame = Slightly bearish
Weekly time frame = Bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Furthermore, when going back to about a year ago, when SquawkBox anchor Rebecca Quick asked Changpeng Zhao whether Binance could withstand a $2 billion fine, Changpeng Zhao’s response, “We are financially strong,” did not sound very reassuring. Now, with the fine being double the number mentioned in the interview (and more fines likely in the coming months), Binance or Binance.US is starting to look like an increasingly dangerous place to hold digital assets. On top of the multiple questionable developments we mentioned in the past month or so, Binance’s settlement is yet another concerning occurrence in the crypto market. Therefore, we find no reason to chase the market, and instead, we prefer to stay on the sidelines until the forecasting clarity improves (or until an attractive setup emerges).
Illustration 1.01
Technical analysis gauge
Daily time frame = Slightly bearish
Weekly time frame = Bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
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