- Grayscale’s legal victory gave Bitcoin much-needed momentum, but crypto gains have been lost.
- According to on-chain data, BTC’s price is trading in a risky area that could lead to a further 10% to 15% drop from its current level, due to a lack of strong support.
- There is a month left to appeal the court decision in favor of Grayscale. During this time, they must present new arguments to contest the court’s decision regarding GBTC.
Bitcoin quickly erased Grayscale’s gains with the SEC victory and fell below $26,000 again; What will happen now?
Bitcoin has started trading in a critical area
Grayscale’s legal victory gave Bitcoin much-needed momentum, but crypto gains have been lost. In the current range, BTC is trading just above the local resistance level.
Contrary to recent trends, the top cryptocurrency seems to be showing weak resistance to price declines. According to on-chain data, BTC’s price is trading in a risky area that could lead to a further 10% to 15% drop from its current level due to a lack of strong support. Crypto’s price could drop to $23,340 from the current $25,800 range, according to Ali Charts:
“On-chain data shows a lack of strong support for BTC below $25,400. If BTC breaks this threshold, it could quickly correct towards $23,340.”
Over the past 7 days, there has been high volatility, with the weekly low at $25,680 and the weekly high at $28,130. As the next deadline for the SEC’s decision on BlackRock’s spot Bitcoin ETF application approaches, Bitcoin could see another wave of volatility in mid-October 2023. On August 31, 2023, the SEC delayed decisions on a series of spot Bitcoin ETF applications, including those from BlackRock, Invesco, and WisdomTree.
Grayscale Decision: What’s Next?
On the other hand, it is essential to see what position the federal regulatory agency will take regarding the Grayscale lawsuit. This decision approved a move to convert Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
There is one month left for the SEC to appeal the court decision. During this time, they must present new arguments to contest the court’s decision, or it may be assumed that they have accepted this decision.
