Bitcoin Volatility Within a Confined Area as Investors Turn to Stablecoins Amidst Regulatory Scrutiny
Looking at the current state of being on Bitcoin in Week 23 of 2023
Bitcoin has seen volatility in its last few days of trading. With the SEC opening fire on the cryptocurrency industry, it filed motions against Coinbase and Binance in the same week, two of the largest players in the industry. This has led to a change in sentiment as investors have begun to seek refuge in stablecoins, which forms the fundamental of this week's volatility. This however, remains within a consolidated region.
Bitcoin Price Analysis
This week, Bitcoin has seen some heavy volatility over the last week, where daily fluctuations of more than 5% have not been uncommon. Early in the week, Bitcoin has dropped from its US$26,800 threshold towards its US$25,800 support region, seemingly breaking down a long-standing range.
However, while it is safe to say that this drop in price can be linked to the SEC filing an emergency motion against Binance, price has seen a sharp recovery, retracing the entire move, reclaiming the important US$25,800 support level, retesting its US$27,400 resistance. Price has seen yet another decline from there.
This week's events have caused significant volatility, resulting in 5% daily price fluctuations. It remains important however to note that ultimately Bitcoin remains in a relatively quiet environment overall as it continues its phase of consolidation, with US$25,800 as support and US$27,800 resistance, before a major progression on the chart can be initiated.
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