The recently announced temporary halt by the world’s largest cryptocurrency exchange, Binance Bitcoin The withdrawals, citing high volumes and increased processing fees, have spooked traders and raised questions about bitcoin’s future price direction.
While the halving caused a temporary drop in bitcoin’s value, its losses were modest, with the cryptocurrency down nearly 1% to $28,162, its lowest in nearly a week.
In this update, we’ll take a closer look at the recent decline in bitcoin price and what it could mean for the entire cryptocurrency market.
Binance halts bitcoin withdrawals twice in 12 hours due to high volumes and high fees
Binance has bitcoin withdrawal blocked Again, explaining that they have a backlog of requests that need to be processed.
The exchange previously suspended BTC withdrawals on May 7 due to an overflow of transactions on the blockchain.
The evacuation was restored after half an hour. However, on May 8, Binance said that it had suspended BTC withdrawals again due to the large number of pending transactions.
There are reportedly around 400,000 bitcoin transactions currently waiting to be processed in the mempool.
By the time Binance halted bitcoin withdrawals for the second time, the number of pending transactions in the mempool had grown to nearly 485,000.
A mempool is a place where transactions are temporarily held until they have been verified by every node on the blockchain.
Currently, there are approximately 400,000 transactions waiting for processing in the bitcoin mempool, with this number increasing to approximately 485,000 at the time of the second Binance withdrawal halving.
These transactions are collectively worth more than $5 billion, and the high volume of unprocessed transactions prompted Binance to temporarily halt BTC withdrawals for the second time in 12 hours.
After Binance temporarily halted bitcoin withdrawals for a second time due to a significant backlog of outstanding withdrawal requests, OKEx reported that its bitcoin deposit and withdrawal services were still operational despite higher transaction fees.
However, a high volume of bitcoin withdrawals put pressure on the BTC/USD price, leading it to slide below the $29,000 mark.
Bitcoin withdrawals unblocked by Binance after temporary halt
The world’s largest cryptocurrency exchange, Binance, suspended bitcoin withdrawals on Sunday and Monday due to high transaction volumes and increased processing fees.
The exchange cited a backlog of pending transactions as the reason it did not offer miners enough reward for processing trades on the blockchain.
Binance restarted the service at a higher cost, replacing pending bitcoin withdrawal transactions with higher fees to ensure they are picked up by mining pools.
The price of bitcoin fell slightly to $28,162, its lowest point in almost a week due to the halving.
bitcoin price
During the US trading session, bitcoin price declined below the $28,000 support, indicating a sustained bearish trend, according to technical indicators such as RSI and MACD.
BTC is currently correcting towards the $28,000 support after failing to surpass the 50-day exponential moving average.
If there is a break below this level, it could potentially target $27,700. While the RSI is oversold, the broken trend line at $28,350 indicates that the bearish momentum is likely to sustain.
Traders can consider a sell below $28,500 with a target of $27,750. However, if BTC manages to climb above $28,500, it could move towards $29,000 or even $29,750.
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