Why is Bitcoin price stuck?

The value of Bitcoin (BTC) has been relatively consistent for multiple days in succession. As BTC price instability has been decreasing, the digital currency markets are considering the SEC’s legal actions against Binance and Coinbase.

Let us delve deeper to analyze why Bitcoin’s price is stagnant and what can be the next trigger for a major shift.

Why is Bitcoin price stuck?

The price of BTC has decreased by 1.5% over the past week, reaching approximately $26,690, despite several sudden changes in reaction to the legal action taken by the U.S. Securities and Exchange Commission against both Binance and Coinbase.

Breaking News: Binance.US has halted USD deposits and cautioned that fiat withdrawals may be temporarily suspended.

In recent months, certain technical obstacles have been instrumental in curtailing the enthusiasm of both bulls and bears.

It is evident that there is a great deal of accumulation sentiment around Bitcoin’s 200-day exponential moving average (20-day EMA; the blue wave) at approximately $25,270. This has helped to keep the selloff that came after the SEC lawsuits this week in check.

Conversely, the 50-day EMA (the red wave) close to $27,220 has acted as a sign for taking profits, thus keeping the Bitcoin price inside the purpled $25,000-27,220 range in spite of occasional attempts to break out.

Interestingly, the 30-day volatility of Bitcoin around the SEC lawsuits is approximately half of what it was during the banking crisis rally in March 2023.

Bears appear to be proceeding cautiously prior to the Federal Reserve’s potential decision to pause rate hikes on June 16, which could be a positive event for Bitcoin. In the interim, the price of BTC may remain in the $26,000-$27,450 range.

The Bitcoin price could potentially increase by 60% if the “textbook” chart pattern is confirmed, according to a trader.

Will BTC price rise further in 2023?

As long as Bitcoin holds its 200-week exponential moving average (the blue wave in the chart below) as support, its long-term outlook appears to be bullish. The bull flag pattern also suggests that it could reach $35,000 by 2023.

Should a decisive breakdown occur beneath the flag and the 200-week EMA, Bitcoin bears will be advocating for a decrease to the essential $20,000 support level.