Bitcoin (BTC) price is back within the $26,100-$28,000 trading range after dropping to fresh 2-month lows on Monday. The volatility in cryptocurrencies has surged after the latest crackdown by the SEC against top crypto exchanges. While the market is up from its Monday low, analysts still expect more downside in the coming days.
On Thursday, the digital assets showed extreme volatility as the BTC price consolidates around the $26,400 level. Till press time, the biggest cryptocurrency was up 0.25%, and ETH price was up 0.17%. Technicals suggest a big move might be around the corner.
BTC Price Recovers After SEC’s Lawsuit Against Coinbase
This week began with the US Securities and Exchange Commission suing the biggest crypto exchange Binance. This triggered an across-the-board sell-off in crypto markets as most digital asset prices tanked to fresh monthly lows. This was followed by a similar action by the SEC against another leading exchange Coinbase.
However, the crypto markets had an unexpected rebound after the Coinbase news, and the Bitcoin price surged above its Monday high of $27,125. Other altcoins also followed, but the coins labeled as securities by the SEC kept lagging in the recovery. The investors are now awaiting the May 2023 CPI data and the next FOMC meeting, which may hike the rates by another 25 bps.
Bitcoin Price May Retest $25.3k Soon
Despite a strong surge on Wednesday, BTC price got rejected and failed to break above the Monday highs of $27,125. This returned the price to the mid-level of the week’s trading range which lies at $26,237. Currently, the price is training above this level, but a breakdown will send it straight to the fresh weekly lows below $25,300.
Bitcoin price prediction will become very bearish if it gains acceptance below the Monday lows of $25,300. In this event, the first target for the bears will be the $23,400 level, where lies the 200-day moving average. This will be a key retest to watch.
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BTC Price Chart