The price of Bitcoin (BTC) has been fairly stable for several days in a row. With the volatility of BTC prices decreasing, the cryptocurrency markets are taking in the SEC lawsuits against Binance and Coinbase.
So why is the Bitcoin price stagnant and what will be the next catalyst for a big move? Let's take a closer look.
Why is the price of Bitcoin stagnant?
BTC price fell 1.5% on the week to date to around $26,690 despite various instinctive price movements in reaction to the US Securities and Exchange Commission (SEC) litigation against Binance and Coinbase.
Related: Breaking: Binance.US Suspends USD Deposits, Warns of Fiat Withdrawal Pause
the EMA range
In recent months, certain technical barriers have played a key role in subduing both the bulls and the bears.
For example, strong accumulation sentiment is visible near Bitcoin's 200-day exponential moving average (20-day EMA; the blue wave) at around $25,270. This helped contain the sell-off that followed the SEC lawsuits earlier this week.
On the other hand, the 50-day EMA (the red wave) near $27,220 has served as a profit-taking indicator, thus leaving Bitcoin price within the purple consolidation range of $25,000-27,220 despite the downturns. occasional breakout attempts.
Bitcoin Bears Cautious Ahead of Fed Meeting
Interestingly, Bitcoin's 30-day volatility around SEC lawsuits is about half of what it was during the banking crisis rally in March 2023.
This suggests a cautious approach by the bears, mainly ahead of the potential decision to pause the Federal Reserve rate hike on June 16, a potentially bullish event for Bitcoin. Meanwhile, the BTC price may continue to consolidate within the $26,000-27,450 range.
Related: Bitcoin Price May Rise 60% If 'Textbook' Chart Pattern Confirms - Trader
Will the BTC price rise further in 2023?
Bitcoin's long-term bias leans bullish as celebrates its 200 week EMA (the blue wave on the chart below) as support. Its bullish flag scenario also indicates a potential break towards $35,000 in 2023.
Conversely, a decisive breakdown below the flag and the 200 week EMA will have Bitcoin bears calling for a drop to the key $20,000 support level.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
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