- YouTuber Scott Melker says the SEC can attack, but can’t take down Bitcoin.
- Melker highlighted how BTC went up quickly after the dip following the lawsuit.
- The analyst also talks about whether the community can expect a rally.
YouTuber Scott Melker, popularly known as the “Wolf of All Streets,” highlighted recent events and the impact they have had on the market in one of his recent videos. Over the course of the past 48 to 72 hours, major players in the industry, such as Binance and Coinbase, have faced legal challenges that have generated concerns and uncertainty among traders and investors. Melker provided a breakdown of these developments and their potential implications.
Additionally, he discussed the market’s and Bitcoin’s initial reaction to the news, the subsequent recovery of BTC, and the significance of technical analysis in understanding these market movements.
The SEC filed documents with the aim of freezing Binance’s assets within the United States. This move raised doubts about the exchange’s future operations in the country and heightened the ongoing legal battle between Binance and the SEC.
Scott mentioned that there was a significant amount of positive movement, with many assets showing green despite the lawsuit. Trader Chris Inks joined the conversation, discussing recent market trends.
Chris believed that the dumping following the Binance news was expected, as panic often accompanies such events. He drew a parallel to a previous incident involving the U.S. Commodity Futures Trading Commission and Binance, which led to a similar temporary downturn that eventually turned into a recovery. Chris speculated that the recent move against Coinbase could be a short squeeze and a technical reaction within a longer-term range. He invited Scott to share his thoughts on this technical analysis.
Scott pointed out that while some anticipated further downward movement, there were still strong levels to overcome before new lows could be reached. He mentioned the importance of understanding how professionals trade, referring to the Wyckoff method.
Scott continued by stating that the current range appeared to be an accumulation phase, with various elements conforming to the principles of Wyckoff analysis. He acknowledged that it could be challenging for emotional traders to comprehend this concept fully. Scott reiterated the importance of risk management in trading and emphasized that there was no foolproof trading system, only proper risk management.
Shifting the focus to specific coins, Scott mentioned that the SEC had named several assets in lawsuits against Coinbase and Binance. He pointed out that these actions represented a passive-aggressive approach by the SEC, selectively targeting certain coins without directly addressing them. Scott discussed the list of coins affected, highlighting the surprising response of Coinbase‘s stock compared to the drop in BNB’s value following the Binance news. COIN plummeted following the lawsuit. However, it has stabilized now.
Chris concluded by stating that both parties needed to negotiate in good faith to find a mutually beneficial solution, as fighting appeared to be the only option in the current circumstances.