Bitcoin Price Hovers Above $26,000 Amidst ETF News
The price of Bitcoin is currently sitting above $26,000 as both bulls and bears continue to exert their influence in the market. Despite low volatility and a decline in spot trading volumes, Bitcoin has managed to trade slightly above $26,400 with a 0.5% increase in the past 24 hours. However, there is still a risk of further declines if the support level between $25,000 and $26,000 is breached.
Stalemate Continues as Spot Trading Volume Hits 6-Year Low
According to CryptoQuant, spot trading volume for Bitcoin has reached a six-year low. This can be attributed to the fact that people are choosing to hold onto their coins instead of selling them for immediate profit. The lack of trading activity suggests that traders have confidence in the future value of Bitcoin. As a result, the stalemate between bulls and bears is expected to persist.
#Bitcoin spot trading volume drops to 6-year low🚨
“People are more interested in holding their coins, believing in their future value, than selling at the first sign of profit.”
by @caueconomy— CryptoQuant.com (@cryptoquant_com) September 26, 2023
SEC Accepts ETF Proposals for Bitcoin and Ethereum
The United States Securities and Exchange Commission (SEC) has accepted proposals from Franklin Templeton and Hashdex to offer spot ETFs for Bitcoin and Ethereum, respectively. Franklin Templeton aims to operate a spot BTC ETF product, while Hashdex has applied for a spot Ethereum ETF. The SEC has 240 days to review the proposals and make a decision, with the final ruling expected in May 2024. The delay in previous ETF decisions has raised concerns about deliberate prolongation by the SEC.
Can Bulls Regain Control of Bitcoin Price?
The approval of a spot Bitcoin ETF is believed to be a catalyst for the next bull run. An ETF would attract institutional investors and increase the inflow of money into the market, validating Bitcoin as a mature asset class. Additionally, investors are anticipating the miner reward halving in 2024, which will reduce supply and potentially drive up demand. Currently, bulls are holding steady and attempting to break through resistance levels. Technical indicators such as MACD and RSI suggest that the uptrend may gain momentum.
Hot Take: Bulls Face Key Resistance Levels
The price of Bitcoin is at a critical juncture as bulls try to break through resistance levels. If they succeed in surpassing $27,000 and $27,500, it could signal an uptrend with a target of $31,000. However, if bulls fail to break through these levels, consolidation above $26,000 or a sell-off towards the primary support at $25,000 may occur. Traders should closely monitor these key levels to assess the market’s direction in the coming days.
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