The Grayscale lawsuit victory gave Bitcoin price the much needed boost but it was to be short lived rally as the cryptocurrency lost all the gains from it. In the current range, BTC is trading just above the local resistance level.
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BTC Price & Local Support
Unlike in the recent times, the top cryptocurrency is showing weak resistance to price drops. According to on-chain data, the BTC price is precariously trading around the danger zone that could lead to a further 10 to 15% drop from the current level, where it lacks strong support. From the current range of $25,800, the cryptocurrency could suffer a price drop to $23,340, according to Ali Charts.
“Bitcoin On-chain data suggests that $BTC lacks strong support below the $25,400 mark. If BTC breaks below this threshold, it could swiftly correct down to $23,340.”
There has been high volatility in the last 7 day range, with the weekly low of $25,680 and the weekly high of $28,130. In the near term, BTC could see another wave of volatility in mid-October 2023 as the U.S. Securities and Exchange Commission (SEC) next deadline for the Blackrock spot Bitcoin ETF filing approaches. On August 31, 2023, the US SEC had delayed decisions on all several spot Bitcoin ETF applications including from BlackRock, Invesco and WisdomTree.
Grayscale Judgment: What Next
On the other side, it remains to be see what kind of a position the federal regulatory agency takes around the Grayscale lawsuit judgment, which granted the company’s motion for approval of the conversion of Grayscale Bitcoin Trust (GBTC) to a spot Bitcoin ETF.
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