On October 13, Bitcoin (BTC) hovered near the $26,800 mark for a second day in a row as U.S. regulators battled with cryptocurrency investment giant Grayscale.
Bitcoin Lurking Between Major Liquidity Clouds
Data comes from Cointelegraph Markets Pro and trading view Bitcoin price is confirmed to be virtually unchanged from the previous day, trading within a narrow corridor.
Bitcoin market analysts weighed potential catalysts, including the U.S. Securities and Exchange Commission’s (SEC) option to appeal a court ruling that refused to allow a Bitcoin spot exchange-traded fund (ETF).
“Today is an important day for the SEC to appeal the Grayscale ruling,” said Michaël van de Poppe, founder and CEO of MN Trading. wrote Part of X post.
“If nothing else, we may see a reversal to the upside in Bitcoin over the next few weeks. I’m in for a long haul.”
The pause in macro data comes after a series of releases this week that suggested inflation was more persistent than markets expected.
Popular trader and analyst Credible Crypto summed up BTC’s likely price trajectory, arguing there are reasons to be moderately optimistic.
“We have a very clear and seemingly controllable ‘ladder’ of price reduction here. Clear low time frame bugs, retest and continue,” he explained There is a chart next to it.
“We left the same lows below, so ideally I’d like to see those lows cleared out before a reversal. Considering we have bids stacked above and below us, pushing the local highs Asking, then rejecting and sweeping our lows into waiting bids and local demand seems like the perfect way to set up a reversal here. Let’s see how things unfold.”
Trader Daan Crypto Trades noted that BTC/USD trades in the area between the two liquidity clouds, with a reaction more likely if the spot price hits either liquidity cloud.
#bitcoin liquidation map
Large area prices are $26,500 and $27,000. Some kind of squeezing is expected in these areas. pic.twitter.com/VW6YYPkMe4
— Daan Crypto Trades (@DaanCrypto) October 13, 2023
Meanwhile, trader and analyst Rekt Capital has set a $25,000 price target for Bitcoin if bulls fail to regain this week’s losses at the exponential moving average (EMA).
At least one of the EMAs needs to be reclaimed as support to avoid a drop to the $25,000 to $26,000 areaBitcoin USD #cryptocurrency #bitcoin pic.twitter.com/ywRkdM07uw
— Rekt Capital (@rektcapital) October 12, 2023
GBTC regains more lost ground
Grayscale’s flagship investment fund, Grayscale Bitcoin Trust (GBTC), continues to outperform ahead of the appeal deadline.
Related: Is SBF Really Using FTX Trader’s Bitcoin to Keep BTC Price Under $20,000?
With GBTC at the center of the legal action eventually becoming a spot ETF, Grayscale said the company will score an early victory in the second quarter and see its fortunes improve.
On October 11, GBTC hit the smallest discount to its net asset value (Bitcoin spot price) since December 2021.
The discount is technically a negative premium, reaching -16.44% before declining slightly. data From monitoring resource CoinGlass.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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