Bitcoin is a volatile asset, yet the price of BTC can remain stable for days, weeks, or even months for a variety of reasons.
Bitcoin’s price has been relatively constant for several days in a row. The SEC’s cases against Binance and Coinbase are being digested by cryptocurrency markets as BTC price volatility has subsided.
So, what is causing Bitcoin’s price to remain stagnant, and what will be the next catalyst for a large move? Let us investigate more.
Despite many knee-jerk price changes in response to the Securities and Exchange Commission’s (SEC) litigation against Binance and Coinbase, the BTC price has declined 1.5% week to date to roughly $26,690.
Certain technical hurdles have played an important role in subduing both bulls and bears in recent months.
A strong accumulation mood, for example, may be seen near Bitcoin’s 200-day exponential moving average (20-day EMA; the blue wave) at roughly $25,270. This aided in containing the selloff that followed the SEC litigation earlier this week.
The 50-day EMA (the red wave) near $27,220, on the other hand, has served as a profit-taking indicator, keeping Bitcoin price within the purpled $25,000-27,220 consolidation area despite occasional breakout efforts.
Surprisingly, Bitcoin 30-day volatility around the SEC litigation is around half of what it was during the March 2023 financial crisis surge.
This shows that bears are taking a cautious approach, owing to the Federal Reserve’s likely rate hike halt decision on June 16 – a potentially bullish event for Bitcoin. Meanwhile, the BTC price may continue to consolidate inside the $26,000-27,450 area.
Will the price of Bitcoin continue to grow in 2023?
Bitcoin’s long-term bias is positive as long as it maintains support at its 200-week EMA (the blue wave in the chart below). Its bull flag scenario suggests a possible breakout toward $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.