© Reuters
Investing.com – After soaring on Wednesday night in the face of Grayscale’s victory over the SEC, the market corrected yesterday morning, before consolidating for a few hours, before finally plunging sharply at the end of the afternoon, canceling out all of the previous increase.
Recall that the US justice ruled in favor of Grayscale, which challenged the SEC’s refusal to transform its Bitcoin GBTC fund into a spot ETF. The decision, which requires the SEC to reconsider the proposal, had fueled hopes that the SEC would finally clear a spot Bitcoin ETF in the United States, knowing that several other applications are pending, including from BlackRock (NYSE: ) and Fidelity.
SEC sends Bitcoin plunging by postponing its decision on Bitcoin spot ETFs
However, the US regulator last night announced a 45-day postponement of its decision on all Bitcoin spot ETF proposals that have been submitted for review, showing that the SEC does not intend to admit defeat easily, and distancing the prospect of a quick validation of a spot Bitcoin ETF.
Unsurprisingly, this hit the price of Bitcoin hard, which fell to a low of $25,750 on Thursday night, compared to a high of over $28,000 the day before.
Note that although most of yesterday’s fall was recorded against this news, the cryptocurrency had already weakened rather, as a series of strong US statistics have strengthened the dollar.
In this context, crypto traders will keep an eye on the NFP report on US job creation this Friday, which could fuel bets on further Fed rate hikes, and therefore weigh on BTC, if it comes up. turns out to be stronger than expected.
Technical thresholds to watch on Bitcoin
From a graphical point of view, we note that the profile of Bitcoin remains globally bearish. However, the important support of the $25,800 area continues to prevent the cryptocurrency from falling too far, and could serve as a basis for a rebound.
If confirmed, the $27,000 threshold will be the first potential obstacle, before the 200-day moving average at $27,550, then this week’s high near $28,000, and the 100-day moving average at $28,474.
If Bitcoin breaks below the $25,800 support, the $25,000 threshold and the August 17 low near $24,800 will form the next major support zone.