Bitcoin unaffected by SEC lawsuit against blockchain and Binance.
- The Securities and Exchange Commission (SEC) has filed a lawsuit against blockchain and Binance, causing concern for traders in the cryptocurrency industry.
- Despite this news, the price of Bitcoin remains unaffected and stable.
- If the Federal Reserve decides not to hike the funds rate again, it may trigger a bullish breakout.
Once again, the cryptocurrency industry is facing a test of confidence as the SEC announced its lawsuit against blockchain and Binance, which has frightened traders operating on these two exchanges.
However, this news did not have any impact on Bitcoin’s stability, as it continues to trade in a consolidation area before its next move.
Bitcoin chart by TradingView
- SEC seeks to freeze Binance US assets.
- Binance.US probe began in 2020, per court documents.
- Bitcoin and Dogecoin lead crypto majors’ bounce a day after 8-month liquidations record.
Is Bitcoin forming a bullish flag pattern?
One of the reasons why Bitcoin is resilient to such news is that it has become more correlated with traditional markets. For example, the movements of the tech sector have a larger influence on Bitcoin than anything else.
Bitcoin and tech stocks both surged in 2023.
After failing at $30k, Bitcoin entered a consolidation phase which is still ongoing. Currently, it appears that Bitcoin is forming a bullish flag pattern, but this can only be confirmed if the market makes a new yearly high.
To trade this bullish flag pattern, two things are necessary. First, wait for the market to move and trade above $30k again. This would signal the end of the bullish consolidation and the start of the measured move.
The measured move is about $10k projected from the upper edge of the flag. This gives a target of $38k for Bitcoin, should it make a new high for the year.
In summary, the recent scandals have once again demonstrated Bitcoin’s resilience. It moves in line with the US dollar and tech sector, so if the Federal Reserve decides not to hike the funds rate at the next meeting, Bitcoin’s chances of rising significantly increase.
