Bitcoin (BTC) Remains Strong After SEC Demands on Binance and Coinbase

SEC's Lawsuit Bullish for Bitcoin, BTC Trapped Below $28.5k
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Bitcoin (BTC) prices are stable on June 9, shrugging off the selling pressure of early this week.

The overreaction of crypto traders turned out to be an opportunity for BTC “diamond hands” that appeared to have scooped the lows of June 5.

Bitcoin buyers still have a chance since the upswing from March to April shapes the current preview.

Prices remain in a horizontal consolidation with caps at $25.8k and $31k, respectively, as a bull flag forms.

Notably, even with crashing prices on June 5, BTC didn’t overcome $25.8k; highlighting the significance of this support level.

SEC’s Lawsuits

This week, the United States Securities and Exchange Commission (SEC) sued Binance and Coinbase. In their court filings, the regulator claims that both exchanges offered unregistered securities trading.

Among them include tokens like Cardano, The SandBox, Decentraland, Chiliz, and Algorand.

However, there was no mention of Ethereum and USDT. These two projects are the top three, only trailing BTC in market cap. With the SEC alleging that Coinbase and Binance facilitate securities trading, capital appears to have flown to Bitcoin.

As it is, BTC prices are solid. The coin remains the only crypto asset the SEC has clarified as a commodity.

Overall, it is a confidence boost for holders and reassurance that regulators won’t come for the asset or exchange force to delist in the months and year ahead.

Subsequently, BTC’s demand could rise, possibly boosting prices.

Bitcoin (BTC) Price Analysis

Bitcoin remains under pressure when writing, down roughly 13% from April peaks. It remains in a sideways range in a possible accumulation.

From a top-down preview, the coin is within a bullish formation, rallying 35% from March lows.

At spot rates, the uptrend remains as long as prices are above $25.8k, a support line marking the base of the current flag.

Since there has been no confirmation of June 6 gains, every low above $25.8k and primary support may offer entries for buyers angling $30k and $31k. This outlook is valid from an effort-versus-result perspective.

On a safer approach, a close above $28.3k and confirmation of the June 6 and May 28 buyers may trigger demand.

In that case, BTC may race back to $31k in a buy-trend continuation. This would reflect gains from mid-March 2023, sparking even more demand for BTC buyers targeting $32.5k and $35k in the weeks ahead.

Any unexpected dump below $25.8k and June 5 lows will cancel this preview.

Technical charts courtesy of Trading View.

Disclaimer: The opinions expressed do not constitute investment advice. If you wish to make a purchase or investment we recommend that you always conduct your research.

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