Bitcoin’s Rollercoaster Ride: SEC Victory, ETF Hope

On August 29, following Grayscale Bitcoin Trust (GBTC)’s victory over the Securities and Exchange Commission (SEC), Bitcoin’s price rose from $25,912 to $28,012; this caused repercussions in the community.

After this bullish surge, the bears swiftly retook control. This puts it back in the modest range of $25,628–$25,858. In addition, Bitcoin dropped 6.25 percent in the previous week.

The sanction of a Bitcoin ETF has increased bullish optimism. When the SEC postponed decisions on other spot Bitcoin ETF applications, including BlackRock’s, until 2024 later in the week, the initial excitement subsided.

Bitwise formally retracted their Bitcoin and Ether ETF proposals, negatively impacting sentiment.

BlackRock is also suspected of manipulating Bitcoin prices before the launch of its ETF. According to analysts, this theory is theoretical. A significant Bitcoin price decline is more detrimental to the investment behemoth than beneficial.

Institutional investors remain bullish on cryptocurrencies despite short-term uncertainties stemming from a complex U.S. regulatory landscape.

The SEC is examining ETF applications submitted by nine major investment firms.

In a market analysis published on September 5, K33’s senior analyst Vetle Lunde and vice president Anders Helseth stated that the preceding three months had increased the likelihood of a Bitcoin ETF approval.

This optimism has not translated into significant Bitcoin or other major cryptocurrency price increases.

They believed improving an ETF would unleash substantial capital inflows and increase Bitcoin’s purchasing pressure.

They argue that rejecting a spot ETF would have little influence on the price of Bitcoin. Recent Bitcoin price fluctuations demonstrate the ongoing bullish-bearish conflict.

The 9-day exponential moving average (EMA) is $26,026, which indicates a bearish outlook. With an RSI of 39, oversold conditions are likely imminent.

Bitcoin is trading at $25,752, with a 24-hour volume decline of 1%. The digital asset’s value is close to the support region between $24,800 and $31,000.

At $24,800, bulls and bears will presumably clash. If this level is breached, the BTC/USDT pair could drop to $20,000, with only a minor cushion at $24,000.

In contrast, bulls have optimism. If they surpass $26,833, they may advance to the 50-day simple moving average of $28,221.