After suffering seesaw oscillations this week, the biggest cryptocurrency by market capitalization, Bitcoin, has dropped below $26,000, returning to its previous position before Grayscale’s positive Bitcoin ETF news boosted the cryptocurrency markets.
As interest in the Grayscale story subsided, Bitcoin dropped to lows of $25,548 in today’s trade, continuing its decline from Tuesday’s high of $28,184.
With Bitcoin losing $2,500 in two consecutive daily red candles on August 30 and 31, the United States Securities and Exchange Commission’s (SEC’s) decision to delay multiple applications for Bitcoin spot exchange-traded funds (ETFs) caused a change of heart.
The deadline to accept or reject six ETF choices within 45 days was extended on Thursday as a result of the SEC delaying files from Bitwise, VanEck, Invesco, Valkyrie, and BlackRock. The SEC cited the need for additional time to analyse the applications as the reason for the delay.
Bitcoin could reach $23K
At the time of writing, Bitcoin’s 24-hour price was $25,843, a decrease of 4.41%. Further drops are now more likely given that Bitcoin has returned to the lowest part of its trading range.
Crypto expert Ali draws attention to the hazardous position Bitcoin appears to be in and the lack of support just below the price at which it is now trading.
Ali points out a worrying statistic regarding Bitcoin’s present situation, using Glassnode’s UTXO realised price distribution (URPD) measure, which serves as a road map for potential price support and resistance levels.
He asserts that on-chain data indicates that BTC is weakly supported below the $25,400 level. According to Ali, if BTC drops below this level, it may quickly correct down to $23,340.
The month of September, which traditionally has resulted in negative returns for BTC, is not in favour of Bitcoin bulls. However, in order to push for a retest above $28,500 and launch a new rally, Bitcoin bulls would like to establish a footing over $25,400.
