SEC Lawsuits Fails to Affect Bitcoin's Resilience
SEC's lawsuits against Coinbase, Binance, fail to dampen Bitcoin's resilient market performance.
The Securities and Exchange Commission (SEC) is taking legal action against cryptocurrency exchanges Coinbase and Binance, yet Bitcoin remains impervious to this potential confidence test for the industry. Despite the potential for such news to impact Bitcoin's value negatively, the dominant cryptocurrency has shown robustness, maintaining steady trading within a consolidation zone.
Bitcoin's resilience may partly result from its increased correlation with traditional markets, particularly the technology sector. Bitcoin's trajectory in 2023 has mirrored that of booming tech stocks. After an unsuccessful attempt at $30k, Bitcoin entered a sustained consolidation period, seemingly forming a bullish flag pattern.
This flag pattern suggests a potential upward surge, conditional on Bitcoin breaking above the $30k mark again. Such an upward movement would confirm the conclusion of the bullish consolidation, warranting the trade of the measured move. In this context, the measured move projects a $10k increase from the flag's upper boundary, setting a new target of $38k for Bitcoin if it reaches a new annual high.
Bitcoin's steadfast performance amidst industry scandals demonstrates its resilience yet again. Its alignment with the US dollar and tech sector trends suggests that a decision by the Federal Reserve to pause and not hike the funds rate at the next meeting could significantly enhance Bitcoin's potential for further gains.
