Aftermath of Grayscale's Legal Victory as Bitcoin Moves Toward $27,000
The opening of Wall Street on August 30 saw Bitcoin (BTC) floating around the $27,000 mark, in the aftermath of a legal win for digital asset manager Grayscale.
Demand for BTC buyers weak
A drop in volatility marked the day's Bitcoin market according to studies from TradingView. Following a favorable outcome for Grayscale against US regulators, sparking a 7.5% boost, Bitcoin eased. The cryptocurrency hit an almost two-week high of $28,143 on Bitstamp before retracting to a consolidating lower.
Yet, despite the daily candle ending above two principal moving averages, they were still to set intraday support, prompting caution from analysts. In a Quicktake note for analytics firm CryptoQuant, expert contributer "MAC_D" suggested that the Grayscale surge might have been spearheaded by derivatives exchanges.
Decreased liquidity and trading volumes
Though funding rates showed neutrality, spot markets appeared uninterested. Trading volumes also remained beneath those recorded during earlier upswings in 2023. As MAC_D further explained, the cryptocurrency market's shrunken overall liquidity means even minimal volumes can dramatically alter prices.
Bitcoin's Peak Reflects Past All-Time High
Noted analyst and trader Rekt Capital shared a similarly restrained outlook for Bitcoin's long-term trend. In his recent YouTube analysis, Rekt Capital suggested Bitcoin might be patterning its moves after action seen around its 2021 all-time high.
Although a fresh Bitcoin peak doesn't appear imminent, the repetitive $31,000 tops on the weekly chart and ensuing fall seem to echo Bitcoin's behavior preceding the 2022 bear slump.
Price bottom targets
If Rekt Capital's warning of similar trends proves correct and the Bitcoin's $26,000 support flips to resistance, downward movement may ensue. Rekt Capital indicated the increasing significance of a $23,000 Bitcoin price floor.
The caveat in all of this is that investment and trading decisions carry risks and it's advised to undertake thorough research before finalizing any course of action.
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