- Grayscale’s lawsuit victory provided much-needed momentum to the Bitcoin price, but lost crypto gains.
- According to on-chain data, the BTC price is trading in a risky area that could lead to a further drop of 10% to 15% from its current level, due to a lack of strong support.
- The SEC has one month left to appeal this court decision. During this time, they need to present new arguments to challenge the court’s decision regarding GBTC.
Bitcoin quickly erased its gains from Grayscale’s SEC victory and fell below $26,000 again; What will happen now?
Bitcoin Started Trading in a Critical Area
Grayscale’s lawsuit victory provided much-needed momentum to the Bitcoin price, but lost crypto gains. Currently, BTC is trading just above the local resistance level.
Contrary to recent trends, the top cryptocurrency seems to be showing weak resistance to price drops. According to on-chain data, the BTC price is trading in a risky area that could lead to a further drop of 10% to 15% from its current level. From the current range of $25,800, according to Ali Charts, the cryptocurrency’s price could drop to $23,340:
“On-chain data shows that BTC is experiencing a strong lack of support below $25,400. If BTC surpasses this threshold, it could quickly correct towards $23,340.”
In the past 7-day range, there has been high volatility with a weekly low of $25,680 and a weekly high of $28,130. As the next deadline for the SEC’s Blackrock spot Bitcoin ETF application approaches, BTC may see another wave of fluctuations in mid-October 2023. On August 31, 2023, the SEC postponed decisions on a series of spot Bitcoin ETF applications, including BlackRock, Invesco, and WisdomTree.
Grayscale Decision: What Happens Next?
Meanwhile, it is necessary to see what position the federal regulatory agency will take around the Grayscale lawsuit decision. This decision approved the movement to convert Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
The SEC has one month left to appeal this court decision. During this time, they need to present new arguments to challenge the court’s decision regarding GBTC. If they do not appeal, it can be assumed that they have accepted this decision.
