Sinking lower
Bitcoin is currently sinking in the crypto market due to a lack of new inflows. To gain new momentum, it needs a significant impulse. Here are the key points:
– Bitcoin is below its daily and weekly moving averages, indicating further downside unless there is a significant event that pushes the price back up.
– The $26,000 level has provided some support, but if it breaks, the price is likely to drop to major support levels at $24,000, $21,000, $19,000, and potentially back to the lows.
– The current bull market for bitcoin is experiencing a longer cycle and declining returns in terms of gains.
– The best-case scenario for this bull market is a 6x increase from the current price, potentially reaching $100k or even $150k.
– Lower prices can be beneficial for those looking for long-term gains and a reliable store of value, as it allows them to buy more.
Momentum can be regained
There are factors that could change bitcoin’s trajectory and regain momentum:
– The upcoming decision by the SEC on whether to grant institutions the ability to launch their own spot ETFs could provide a boost to bitcoin.
– The D.C. Circuit Court of Appeals is also due to decide on Grayscale vs SEC, which could potentially lead to the approval of a spot ETF.
– Bitcoin, regardless of its current direction, offers an alternative to the unfair and corrupt monetary system and is gaining recognition from large institutions.
Hot Take
Bitcoin’s current decline may continue, but there are potential catalysts that could change its trajectory. The decision on spot ETFs by the SEC and the outcome of Grayscale vs SEC could provide the much-needed impulse for bitcoin to regain momentum. Whether it goes up, down, or sideways, bitcoin remains a valuable asset for those seeking an alternative to the traditional monetary system.
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