Bitcoin Hovers around $26,800 as Grayscale SEC Appeal Looms
Bitcoin (BTC) remained range-bound near the crucial $26,800 level for the second consecutive day on October 13. The US Securities and Exchange Commission’s (SEC) decision on whether to appeal a court ruling regarding its denial of a Bitcoin spot exchange-traded fund (ETF) from Grayscale is among the potential catalysts that Bitcoin market analysts are considering.
Potential Catalysts for Bitcoin
Analysts are closely watching the SEC’s appeal on the Grayscale ruling. If no appeal is made, there could be a scenario where Bitcoin reverses upwards in the coming weeks. Macro data releases related to inflation, which have been higher than expected, are taking a break for now.
Possible BTC Price Trajectory
Popular trader Credible Crypto believes that Bitcoin is currently experiencing a controlled “stairstep” down in price. He suggests that before a reversal occurs, it would be ideal to see the equal lows below cleaned up. This would involve a push to local highs followed by a rejection and sweep of lows into waiting bids and local demand.
Moving within Liquidity Clouds
Trader Daan Crypto Trades notes that BTC/USD is moving within a zone between two liquidity clouds. He expects some sort of squeeze to occur if the spot price reaches either one of these zones.
BTC Target if EMAs Are Not Reclaimed
If bulls fail to reclaim the exponential moving averages (EMAs) lost during the week, trader Rekt Capital sets a target of $25,000 for Bitcoin.
Grayscale Bitcoin Trust Performance
The Grayscale Bitcoin Trust (GBTC), Grayscale’s flagship investment fund, has been performing well ahead of the appeal deadline. Grayscale has stated that GBTC will eventually become a spot ETF. On October 11, GBTC reached its smallest discount to net asset value since December 2021.
Hot Take: Bitcoin Awaits SEC Appeal Decision
Bitcoin’s price remains in a tight range as the market awaits the US SEC’s decision on whether to appeal the court ruling regarding Grayscale’s Bitcoin spot ETF. Analysts are closely monitoring this decision for potential price catalysts. In the meantime, Bitcoin is experiencing a controlled downward trend, with traders looking for signs of a reversal. The spot price is moving within liquidity clouds, which could lead to increased volatility if breached. Additionally, the performance of Grayscale’s GBTC continues to be strong, indicating growing investor interest in Bitcoin.
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