Market participants say Bitcoin is ripe for a drop to its lowest level since March, with BTC price action holding below $26,000.

On June 6, the price of Bitcoin was hovering around $25,800 as the aftermath of a new panic regarding the largest exchange, Binance, lingered.

BTC price at risk of losing multi-month range

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it stabilized after falling to a near three-month low.

The weakness came as markets reacted knee-jerk to news that the U.S. Securities and Exchange Commission (SEC) had sued Binance and its CEO Changpeng “CZ” Zhao for “various violations of securities laws.”

“Through this 13-count indictment, we allege that Zhao and the Binance entities engaged in a widespread web of deception, conflicts of interest, lack of disclosure, and intentional evasion of the law,” SEC Chairman Gary Gensler said in a press release.

While sparks continue to fly between exchanges and the SEC — even on social media — bitcoin traders are also focusing on what a recovery might look like.

Popular trader Crypto Ed has $26,200 as a rebound target before fresh downside due to lack of spot buyer demand.

“I think we’re very close to a bounce, but it’s probably a short-term bounce,” he concluded in a dedicated YouTube markets update following the Binance news.

Crypto Ed added that his downside targets are at or just above the $24,000 mark.

Trader Crypto Tony agreed, sharing a similar medium-term roadmap for BTC price.

“More profit on my shorts this morning but now looking for a relief wave before the final leg down towards $24,500,” he told Twitter followers.

“I expect this to be the last leg down before we set up for the July/August surge.”

On the same day, trading suite DecenTrader issued a warning about Bitcoin's high short ratio, which even exceeded the level after the FTX exchange crash in November 2022.

“If we are to continue to rebound, we would generally like to see this start to taper off,” it noted in part of a Twitter comment.

Risk assets are already “on the brink”

Others went beyond the Binance story, calling for an improvement in the broader environment for risk assets in the coming months.

Among them was Arthur Hayes, the former CEO of derivatives exchange BitMEX, who said in his response that subpar cryptocurrency performance is directly correlated to U.S. economic activity.

He noted that the Treasury General Account (TGA) is increasing, repeating existing theories about the direction of cryptocurrency prices for the rest of 2023.

"Markets down on some Binance FUD. But risk of TGA refill increases regardless of catalyst," he wrote in part of the tweet.

“By the end of summer, mrkt will surpass that, with a lot of money printing humming in the background.”

Crypto long traders saw liquidations totaling just under $300 million on June 5, according to monitoring resource CoinGlass.