Bitcoin (BTC) was hovering around the key $26,800 mark for a second day on October 13 with a decision due amid US regulators’ battle with crypto investment giant Grayscale.
Bitcoin hides between major liquidity clouds
Bitcoin market analysts have evaluated potential catalysts, among which the United States Securities and Exchange Commission (SEC) has chosen whether or not to appeal a court ruling on its refusal to authorize a Bitcoin spot exchange-traded fund (ETF).
“Today is an important day with the SEC’s appeal of the Grayscale decision,” Michaël van de Poppe, founder and CEO of MN Trading, wrote as part of a publication X (formerly Twitter).
“If nothing happens, we could see a case of Bitcoin reversing higher in the coming weeks. I am positioned long.
Macroeconomic data releases were due to take a break after a series of releases throughout the week, all of which were released. showed more persistent inflation than expected by market expectations.
Summing up the possible trajectory of BTC prices from here, popular trader and analyst Credible Crypto saw reason to be modestly optimistic.
“Here we have a very clear and apparently controlled ‘staircase’ when it comes to prices. Clear outages, retest and continue in a short time frame,” he said. explain next to a chart.
“We leave behind even troughs right below us, so ideally I’d like to see them cleaned out before a rollover. Since we have bids layered above and below us, a push to local highs in demands followed by a rejection and sweep of our lowest in pending bids and local demand seems like the perfect way to form a reversal here. Let’s see how things develop.
Another trader, Daan Crypto Trades, noted that BTC/USD was moving in an area between two liquidity clouds, with a more likely reaction if the spot price reached either.
#Bitcoin Clearance map
Large areas at $26.5k and $27k. One would expect some sort of compression to occur in these areas. pic.twitter.com/VW6YYPkMe4
– Daan Crypto Trading (@DaanCrypto) October 13, 2023
Trader and analyst Rekt Capital, meanwhile, set a target of $25,000 on Bitcoin if bulls fail to reclaim the exponential moving averages (EMA) lost during the week.
– Rekt Capital (@rektcapital) October 12, 2023
The GBTC is still recovering lost ground
Ahead of the appeal deadline, Grayscale’s flagship investment fund, the Grayscale Bitcoin Trust (GBTC), continued to outperform.
At the center of the legal proceedings, GBTC will eventually become a spot ETF, Grayscale said, with an early victory for the company seeing its fortunes turn around until the second trimester.
On October 11, GBTC reached its smallest discount to net asset value – the spot price of Bitcoin – since December 2021.
The discount, technically a negative premium, reached -16.44% before falling slightly, according to data from the CoinGlass monitoring resource.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.