Bitcoin is currently trading above $84,600 on April 20, showing strong bullish momentum despite the regulatory challenges posed by the lawsuit filed by the Oregon Attorney General against Coinbase. Despite the legal pressure, Bitcoin’s price remains resilient, indicating strong investor confidence in its broader bullish trend.
Key Highlights:
Oregon Lawsuit Against Coinbase:
The Oregon Attorney General has filed a securities enforcement action against Coinbase, alleging that the exchange sold unregistered crypto assets, putting investors at risk. Despite this, Bitcoin’s price has shown remarkable resilience, maintaining its position above $84,000.
Institutional Confidence:
Bitcoin continues to receive inflows from institutional investors, and on-chain data shows strong holder conviction with over 14,000 BTC withdrawn from exchanges in the past eight days. This reduction in exchange-held Bitcoin signals tightening supply, which could lead to further price appreciation.
Bitcoin’s Technical Setup:
Bitcoin has formed a bullish coil pattern near the $85K level, with a potential breakout above this resistance triggering a rally towards $88K and beyond.
Bitcoin’s price is consolidating above $84,600, having closed above $80,000 for eight consecutive sessions. The strong technical setup, combined with a decrease in supply, suggests that Bitcoin is poised to maintain its positive momentum in the near term.
Market Resilience Amid Broader Economic Pressures:
Despite challenges in the U.S. tech sector, with stocks like NVIDIA and Microsoft underperforming, Bitcoin has appreciated by nearly 12% since April 12. This divergence indicates that Bitcoin continues to attract strong interest as a long-term macro asset, particularly as traditional markets experience heightened volatility due to U.S. fiscal policy and central bank actions.
Bullish Outlook:
The continued withdrawal of BTC from exchanges is often a precursor to major bullish cycles, and this behavior suggests that investors are anticipating institutional participation, which could push Bitcoin towards its $90K or even $100K target in the coming months.
Bitcoin Price Technical Analysis:
Resistance: Bitcoin is consolidating below the $85,500 resistance, forming a compression zone that could lead to a breakout. A daily close above $85,500 would likely trigger a short-term rally to $88,000.
Support: Bitcoin has strong support around the $84,000 mark, with further downside potential being limited to $82,300.
Indicators: The Relative Strength Index (RSI) shows that Bitcoin is in a bullish zone, and the bullish Buy Balance Power (BBP) reinforces near-term strength.
In conclusion, while the Oregon lawsuit against Coinbase may create some short-term noise, the broader structural and technical factors remain bullish. Bitcoin is well-positioned to continue its upward trajectory, with $90,000 and $100,000 being realistic targets in the coming months.
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