A New Era of Bitcoin: Famous Crypto Stable Despite SEC Lawsuits
• Bitcoin (BTC) price has been in a stable range for several days.
• Market reactions to SEC lawsuits against Binance and Coinbase have caused BTC volatility to subside.
• A potential rate hike pause decision from the Federal Reserve could cause a bullish event for Bitcoin.
Why is Bitcoin Price Stuck?
Bitcoin (BTC) price has remained fairly stable for several days in a row despite market reactions to the U.S. Securities and Exchange Commission’s (SEC) lawsuits against Binance and Coinbase. Technical barriers such as the 200-day exponential moving average (20-day EMA; the blue wave) at around $25,270 have served to contain any selloffs that may have ensued, while profit-taking indicators such as the 50-day EMA (the red wave) near $27,220 have left BTC price inside the purpled $25,000-27,220 consolidation range despite occasional breakout attempts.
Bearish Caution Ahead of Fed Meet
Interestingly, Bitcoin 30-day volatility around the SEC lawsuits is roughly half of what was during the banking crisis rally in March 2023 – indicating caution from bears ahead of a potential rate hike pause decision from the Federal Reserve on June 16th which could act as a potentially bullish event for Bitcoin. The current BTC price may continue consolidating inside the $26,000-27,450 range until then.
Long Term Bullishness
In terms of long term bias tilts towards bulls if its 200-week exponential moving average (EMA; blue wave in chart below) remains supported, with its bull flag scenario indicating a potential breakout towards $35,000 in 2023. However this potential will be dependent on whether or not it manages to stay above this support level and avoid breaking down below its flag pattern before then.
What Could Cause Big Move?
The next major catalyst that could cause a big move would be an announcement from either Binance or Coinbase about their legal issues with SEC – either one is likely to impact sentiment significantly enough to affect Bitcoin’s price movements over time once news becomes available regarding their respective outcomes with regards to these issues. Furthermore any other significant news events related to finance or cryptocurrency regulation are also likely factors that can affect Bitcoin’s movements over time going forward until it finds itself firmly established within mainstream financial markets worldwide.
