Bitcoin price is hovering above $26,000 as both bulls and bears exert their control amid a flurry of news regarding both Ethereum and BTC exchange-traded funds (ETFs). The largest cryptocurrency is trading slightly above $26,400 on Thursday, up 0.5% in 24 hours with $14.8 billion in trading volume rushing in.
The stalemate between bulls and bears will likely continue amid the low volatility and a slump in spot trading volumes to a six-year low, CryptoQuant reported earlier this week. Traders are well aware that BTC is not out of danger, with declines likely to extend if support between $25,000 and $26,000 is compromised.
#Bitcoin spot trading volume drops to 6-year low🚨
“People are more interested in holding their coins, believing in their future value, than selling at the first sign of profit.”
by @caueconomyLink👇https://t.co/2MgO5PJawu
— CryptoQuant.com (@cryptoquant_com) September 26, 2023
On the other hand, it would be premature to rule out an immediate rebound above the narrow range upper limit at $27,500. Such a move would signal traders on the sidelines to join the uptrend, targeting $31,000 ahead of the bull run confirmation or invalidation.
SEC Accepts Franklin Templeton, Hashdex Spot ETF Proposals
The United States Securities and Exchange Commission (SEC) has accepted applications by Franklin Templeton and Hashdex to offer spot ETFs.
Franklin Templeton in a filing with the agency sought to operate a spot BTC ETF product while Hashdex applied for a spot Ethereum ETF.
The SEC has 240 days from the date of filing in which it is expected to either deny or approve the proposals. In other words, the final decision by the SEC could go as far as May 2024. However, there are several interim consideration deadlines that the SEC can use to get the public view on the matter.
This is not the first time the SEC is delaying its decisions on ETF proposals with some fearing that the agency could be doing so deliberately to exhaust the 240 days. The regulator also moved to delay two other applications for spot BTC ETFs from Ark 21Shares and GlobaX amid the looming government shutdown in the US.
On Wednesday, the Commission delayed decisions on two Ethereum ETF proposals from VanEck and ARK Invest. The proposals will be considered again on December 25 and December 26, 2023.
Can Bulls Regain Control Over Bitcoin Price
It is believed that the approval of a spot Bitcoin ETF would kickstart the next bull run. An ETF product would serve as a conduit for institutional investors to seek exposure to Bitcoin thus increasing the influx of money into the market, not to mention the approval that BTC is a mature asset class.
Investors are also looking forward to the miner reward halving in 2024 which will cut supply while demand increases thus creating a suitable environment for a rally.
In the meantime, bulls appear to be holding steady and are ready to take another sweep at the immediate resistance posed by a descending multi-month trendline. With a natural break above this level, a new path may emerge for bulls to tackle the subsequent seller congestion area at $ 27,500 – the upper range limit.
The Moving Average Convergence Divergence (MACD) indicator currently with a buy signal hints at the uptrend gaining momentum. At the same time, the Relative Strength Index (RSI) confirms the growing bullish strength as it steps above the midline.
Note that if bulls fail at the next attempt to push above $27,000 and $27,500, consolidation above $26,000 may follow or trigger a sell-off below $25,000 primary support for another sweep at $22,000 and if push comes to shove $20,000 ahead of the next significant recovery.
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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.
