BTC Price Climb To $28k On The Verge Of Losing Momentum

BTC Price Climb To $28k On The Verge Of Losing Momentum

BTC price reacted positively to the landmark victory of the largest digital assets investment manager, Grayscale Investments against the United States Securities and Exchange Commission (SEC).

The appeals court rejected the SEC’s decision to stop the conversion of the company’s Bitcoin Trust product into an exchange-traded fund (ETF), following a reevaluation of its initial proposal.

Will BTC Price Climb to $30k or Drop To $25k

Crypto participants in the US and the world at large continue to wait with bated breath for the SEC to approve the first spot Bitcoin ETF. ETFs carry a lot of weight when it comes to the mainstream adoption of cryptocurrencies. They are a conduit for conventional investors to dip their feet in the crypto verse, without the need to hold the underlying digital asset like BTC.

Despite Grayscale’s victory, the road to the first approval of a spot ETF is very uncertain and remains at the mercy of the SEC, which is expected to decide on seven more proposals whose deadlines come in a week.

On September 1, Bitwise, an investment company, will know the fate of its spot BTC ETF proposal. BlackRock, VanEck, Fidelity, Invesco, and WisdomTree are all waiting for the SEC’s verdict for their funds – anticipated by September 2, as indicated in numerous SEC filings.

Concurrently, Valkyrie is expecting a response from the SEC about its application by September 4.

Meanwhile, BTC price jumped in the direction of $30,000 following the appeals court ruling after consolidating its August losses around $26,000 and the major support at $25,000.

The largest crypto tested resistance at $28,000, reinforced by two indicators; the 50-day Exponential Moving Average (EMA) (red) and the 100-day EMA (blue). Although up 5.2% to $27,420, Bitcoin has corrected from the weekly high of $28,280.

BTC price on the move to $28k
BTC/USD daily chart | Tradingview

If investors continue to heed the call to book fresh positions in BTC ahead of an expected climb above $30,000, the path with the least resistance would stick to the upside.

The Moving Average Convergence Divergence (MACD) indicator reinforced the bullish outlook with a buy signal. Traders consulting this momentum indicator buy when the MACD line in blue flips above the signal line in red.

If investors missed out on the sudden rally from $26,000 to $28,230, they may want to wait until BTC price confirms a breakout above the confluence resistance of around $28,000. Such a move would serve as an assurance of enough momentum to see Bitcoin through $30,000.

Considering the weak market structure, investors should also prepare for a plausible correction back to $26,000 and possibly $25,000. At the same time, September might not be an easy month for BTC price, especially if the Federal Reserve in the US hikes interest rates again as it tightens its grip around the stubborn inflation.

Additionally, there is a possibility of the SEC approving ETF proposals as a batch or postponing the decision to a later date. The former outcome would be extremely bullish for BTC price while the latter may keep the market depressed, possibly paving the way for losses to $20,000.

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John is a renowned crypto analyst and journalist, providing expert insights into both broad and focused aspects of the digital asset market. As a steadfast reporter, he keeps his audience updated with the latest news in the crypto sphere, delving into topics such as price trends, on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.


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