Bitcoin soared on August 29 on reports that crypto asset manager Grayscale had won its lawsuit against the United States Securities and Exchange Commission (SEC) for converting its over-the-counter Grayscale Bitcoin Trust into a listed spot Bitcoin exchange-traded fund. However, the euphoria was shortlived as analysts cautioned that the victory did not mean a listing of the Grayscale spot Bitcoin ETF was certain.

The sentiment soured further after the SEC delayed its decision on all pending Bitcoin spot ETF applications on August 31. That meant the deadline was pushed forward by the SEC to October 17. This news pulled Bitcoin back into the range.

We said in the previous analysis that the oversold levels on the RSI suggest a recovery or consolidation is possible and that is what happened. Bitcoin soared above the 20-day exponential moving average (EMA) on August 29. A minor negative is that the bulls could not sustain the higher levels. This suggests that the bears view the rallies as a selling opportunity. The price plunged back below the 20-day EMA on August 31.

Since then, the BTC/USD pair has been trading inside a small range, indicating a lack of aggressive buying or selling by the traders. The downsloping moving averages and the relative strength index (RSI) in the negative territory indicate that bears are in command. The sellers will attempt to sink the price below $25,000 but the bulls are expected to defend this level with all their might.

A strong bounce off this support will indicate that the $31,050 to $25,000 range remains intact. On the contrary, a break and close below $25,000 will signal the start of a deeper correction. There is a minor support at $24,000 but that is likely to be broken. The pair could then plunge to the crucial support at $20,000. On the upside, the moving averages will act as a major hurdle.

The bulls will have to propel the price above $28,185 to indicate the start of a relief rally toward $31,050.

Lastly please check out the advancement’s happening in the cryptocurrency world.

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