The cryptocurrency industry has been tested again with the Securities and Exchange Commission (SEC) announcing that they are taking legal action against Coinbase and Binance. Despite this, Bitcoin continues to show resilience and is trading in a consolidation area.
The resilience of Bitcoin may be attributed to its correlation with traditional markets, such as the tech sector. When tech stocks surged in 2023, so did Bitcoin, and since then, it has been forming a bullish flag pattern.
In order to trade this pattern, Bitcoin must first move above $30k again, signaling the end of the consolidation. If this happens, the measured move will be around $10k, leading to a target of $38k.
The outcome of this pattern depends on the Federal Reserve’s decision at the next weeks meeting, as a pause in the funds rate could trigger a bullish breakout. This would prove, yet again, Bitcoin’s resilience.
