Bitcoin (BTC) is currently experiencing increased selling pressure as it drops below several significant technical indicators. This suggests that the bears are gaining confidence while the bulls are losing their momentum.
On August 29th, Bitcoin experienced a significant event. It fell below the crucial 200-week moving average (MA), a historical support level. This level often indicates market cycle bottoms. The last instance of such an occurrence was in March 2020. At that time, it briefly dropped to $3,800 before rebounding to new highs.
The current value of the 200-week MA stands at around $25,500. A sustained drop beneath this threshold could indicate a deeper correction for Bitcoin’s price. Michael Saylor, former CEO of MicroStrategy and one of Bitcoin’s largest corporate holders, publicly acknowledged this rare occurrence on Twitter.
Michael Saylor suggested that long-term investors might see a golden buying opportunity. However, not all analysts share an optimistic view of Bitcoin’s prospects in the near future. Benjamin Cowen, CEO of the ITC newsletter, highlighted an important indicator called the monthly MACD.
— Michael Saylor⚡️ (@saylor) August 28, 2023
According to Cowen’s analysis, the MACD has recently turned green for the first time since July 2019. This shift could indicate that July 2021 was likely the best month for Bitcoin this year and potentially imply further challenges ahead in the immediate future.
“In 2023, the monthly MACD flipped green in July, and so far July is the yearly high (and good chance it stays that way),” he tweeted.
I see some chatter about the monthly MACD for #BTC flipping green.
In 2019, the monthly MACD flipped green in June and June was the yearly high.
In 2023, the monthly MACD flipped green in July, and so far July is the yearly high (and good chance it stays that way). pic.twitter.com/yytjLu0gdM
— Benjamin Cowen (@intocryptoverse) August 28, 2023
ETF Approvals Could Boost Bitcoin
Bitcoin’s price could be influenced by various factors, including the outcome of pending applications for Bitcoin exchange-traded funds (ETFs) in the U.S. These ETFs would give investors access to the cryptocurrency market without needing to own or store the coins themselves.
Recently, Grayscale Investments, a prominent crypto asset manager, achieved a significant legal victory against the Securities and Exchange Commission (SEC). The court ruled that the SEC had acted arbitrarily and capriciously in denying Grayscale’s request to convert its Bitcoin Trust into an ETF last year.
The SEC received a ruling from the D.C. Circuit Court of Appeals, stating that their actions regarding Grayscale’s proposal were deemed arbitrary and capricious. As a result, they have been ordered to reconsider it. This decision is seen as a significant moment for the crypto industry, with the SEC facing setbacks due to its hesitancy in approving Bitcoin ETFs thus far.
The Securities and Exchange Commission (SEC) is expected to make definitive choices about various Bitcoin exchange-traded fund (ETF) applications by September 1st and 2nd. This has sparked hope among crypto enthusiasts. They believe a Bitcoin ETF approval might boost the market, drawing in institutional and retail investors alike.
Related Reading | Court Rules In Favor Of Grayscale Against SEC In Spot Bitcoin ETF Case
Notably, investor and YouTuber Lark Davis observed that the demand for Bitcoin spans across small retail investors to prominent individuals, surpassing the monthly supply generated through mining operations.