- Grayscale Bitcoin Trust’s victory over the SEC boosted major cryptocurrencies.
- Bitcoin’s failure to surpass $30,000 may have impacted investor confidence.
- Bloomberg analysts predict a Bitcoin ETF approval by end of 2023.
Following a notable triumph over the U.S. Securities and Exchange Commission (SEC) in their bid to convert the Grayscale Bitcoin Trust (GBTC) into a publicly traded Bitcoin ETF, the major cryptocurrencies saw a positive shift in their charts. However, the coins swiftly returned to their bearish trends in an unexpected twist. This was particularly evident with Bitcoin
Despite the recent downturn, the bullish surge experienced on August 29, which propelled Bitcoin from $25,912 to $28,089, has allowed it to sustain its overall upward trend. It’s crucial to highlight that Bitcoin has grappled with a powerful bearish stronghold for over two months.
Surprisingly, Bitcoin, which holds second in trading volume just behind Tether, has seen a substantial 55% drop in the last 24 hours. Market experts posit that Bitcoin’s failure to surpass the $30,000 threshold may have adversely impacted investor confidence. This has resulted in uncertainty about whether bearish trends could offset the bullish momentum sparked by the recent victory.
Positive Outlook
Conversely, within the crypto community, there is a prevailing bullish outlook. This is largely driven by the impending sanction of a Bitcoin ETF, which has attracted significant support and expectation. Industry specialists further bolster this bullish perspective with their assessments and viewpoints. Significantly, Bloomberg analysts have raised the probability of a spot Bitcoin ETF being approved by the end of 2023 following Grayscale’s triumph against the federal securities regulator.
In a recent post on X (formerly known as Twitter) dated August 30, Eric Balchunas, a senior ETF analyst at Bloomberg, highlighted that the odds have been increased from 65% to 75%. This is due to the recent unanimous and definitive decision by the United States Court of Appeals Circuit in favor of Grayscale. In a separate note, Bloomberg analysts James Seyffart and Elliot Stein emphasized that the unanimous dismissal of the SEC’s arguments by the judges and the agency’s potential difficulty in justifying further rejections contribute to this heightened probability.
Additionally, U.S. presidential candidate Vivek Ramaswamy lauded Grayscale’s triumph, expressing criticism towards the covert operations of the U.S. government. He attributed this success to the crucial role of the U.S. judicial system, which he views as the final safeguard in retaining cryptocurrency innovators within the nation.
Is Bitcoin poised for a bullish rally?
A detailed examination of Bitcoin’s latest price fluctuations underscores a persistent upward trend in the daily chart. The 9-day exponential moving average (EMA) at $26,850 reflects a dominant bullish outlook akin to Bitcoin’s valuation at $27,237. The Relative Strength Index (RSI) is currently at 47, indicating a neutral territory.
The recent surge in Bitcoin’s value on August 29 has effectively broken its previous range, indicating a potential price oscillation within the broad spectrum of $24,800 to $31,000 for a certain period. The ability of buyers to maintain the breakout point at $26,833 and transform it into a support level would be a strong bullish indicator. The BTC/USDT pair could initially target the 50-day simple moving average (SMA) of $28,689, followed by a potential rally towards the $31,000 mark.
Conversely, should the bears succeed in driving the price below the $26,833 mark, it would signal their prevailing control. This also suggests a propensity to offload during any rebound efforts. Under these circumstances, the pair might have the opportunity to reevaluate the strong support threshold at $24,800.
