Blog

• The SEC is suing Coinbase and Binance, in yet another scandal in the crypto business 
• Bitcoin price remains unfazed
• A bullish breakout may be triggered by the Fed not mountaineering the funds charge once more 

The cryptocurrency business faces, yet once more, another take a look at of confidence. The Securities and Exchange Commission (SEC) introduced that it was suing Coinbase and Binance in a transfer that scared cryptocurrency merchants working on the two exchanges. 

But what had the potential of triggering a bearish transfer in the most important cryptocurrency markets turned out to have zero influence. In specific, Bitcoin exhibits resilience, buying and selling in a consolidation space earlier than its subsequent transfer. 

Bitcoin chart by TradingView

Is Bitcoin forming a bullish flag sample?

One of the explanation why Bitcoin is resilient to such information is that it has grow to be way more correlated with conventional markets. For occasion, the tech sector’s actions affect Bitcoin way more than the rest. 

Tech shares surged in 2023, and so did Bitcoin. 

After failing at $30k, it entered a consolidation which continues nonetheless. At this level, it appears like Bitcoin varieties a bullish flag sample, however provided that the market makes a brand new yearly excessive one might make certain the consolidation ended. 

Therefore, to commerce this bullish flag, one wants two issues. One is to attend for the market to maneuver first and commerce above $30k once more. Such a transfer will sign that the bullish consolidation is over, and it is time to commerce the measured transfer. 

In this case, the measured transfer is about $10k projected from the higher fringe of the flag. That provides us a goal of $38k for Bitcoin, ought to it make a brand new excessive for the 12 months. 

All in all, the current scandals may show, as soon as once more, Bitcoin’s resilience. The cryptocurrency strikes in line with the US greenback and the tech sector, and so, if the Federal Reserve decides to pause and not hike the funds charge at the subsequent week’s assembly, Bitcoin’s possibilities of squeezing greater enhance considerably.