- After Grayscale’s victory against the SEC on Tuesday, the price of Bitcoin quickly recovered and rose above $27,500 levels.
- There has been a renewed interest from traders, especially in Bitcoin. If Bitcoin continues to maintain the current range of $27,000 – $28,000, the situation should stabilize.
- The BTC price fell below the 200-day moving average earlier this month and failed to rise above these levels.
Bitcoin price showed a rapid increase with Grayscale’s victory, but then paused; What is needed for the rise to continue?
Will Bitcoin Price Continue to Recover?
After Grayscale’s victory against the SEC on Tuesday, the price of Bitcoin quickly recovered and rose above $27,500 levels. However, the BTC price experienced a partial retreat and is currently trading at $27,190 with a 0.79% decrease.
According to on-chain data, trading volume continued even after Tuesday’s rally. On-chain data provider Santiment states that trading activity has significantly continued following the recent price increases in the cryptocurrency market.
There has been a renewed interest from traders, especially in Bitcoin. If Bitcoin continues to maintain the current range of $27,000 – $28,000, the situation should stabilize. However, if the price surpasses this range, the possibility of increased volatility is high.
Major holders in the cryptocurrency space, often referred to as whales and sharks, may have had insights about the outcome of Grayscale and SEC’s legal case. Just a day before the news, wallets holding between 10,000 and 10,000 Bitcoins (BTC) acquired a total of $388.3 million worth of BTC.
Pay Attention to Bitcoin Technical Indicators
In the past few weeks, Bitcoin has shown weakness in technical charts. The BTC price fell below the 200-day moving average earlier this month and failed to rise above these levels.
If the BTC price fails to sustain above $25,000, there is a risk of further decline towards $20,000. Other developments to watch in the near future include the possibility of Fed tightening in a sticky inflation environment.
Bloomberg’s senior commodity strategist Mike McGlone explains: “Bitcoin $30,000 Could Be New $12,000, Fed Tightening Risk Looms – Approval of Bitcoin ETFs in the US is imminent, but the elephant in the room is still there for all risk assets – the Fed is still tightening despite the economic contraction bias.
