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Bitcoin (BTC) traded around the key $26,800 mark for a second day on Oct. 13, as investors awaited a decision in the United States regulators’ ongoing battle with crypto investment giant Grayscale.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin lurks between major liquidity clouds
Data from Cointelegraph Markets Pro and TradingView confirmed that the BTC price barely changed from the previous day, acting within a narrow corridor.
Bitcoin market analysts weighed potential catalysts, including the U.S. Securities and Exchange Commission’s (SEC) decision on whether to appeal a court ruling regarding its refusal to allow a Bitcoin spot exchange-traded fund (ETF).
“Today is an important day with the SEC Appeal on the Grayscale ruling,” Michaël van de Poppe, founder and CEO of MN Trading, wrote in part of an X post.
“If nothing happens, we might be seeing a case where Bitcoin reverses upwards in the coming weeks. I’m positioned long.”
BTC/USD annotated chart. Source: Michaël van de Poppe/X
Macro data prints were due to take a break following a series of releases through the week, all of which showed inflation to be more persistent than market expectations had predicted.
Summarizing the possible BTC price trajectory from here, popular trader and analyst Credible Crypto saw cause for modest optimism.
“We have a very clear and seemingly controlled ‘stairstep’ down on price here. Clear low timeframe breakdowns, retests, and continuation,” he explained alongside a chart.
“We are leaving behind equal lows right below us, so ideally I’d like to see these cleaned up before a reversal. Considering we have bids stacked above and below us, a push to the local highs into asks followed by a rejection and sweep of our lows into the waiting bids and local demand seems like the perfect way to form a reversal here. Let’s see how things develop.”
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BTC/USD annotated chart. Source: Credible Crypto/X
Fellow trader Daan Crypto Trades noted that BTC/USD was moving within a zone between two liquidity clouds, with a reaction more likely should the spot price reach either one.
#Bitcoin Liquidation Map
Big zones at $26.5K & $27K. Would expect some sort of squeeze to occur at those areas. pic.twitter.com/VW6YYPkMe4— Daan Crypto Trades (@DaanCrypto) October 13, 2023
Trader and analyst Rekt Capital meanwhile placed a target of $25,000 on Bitcoin should bulls fail to reclaim exponential moving averages (EMAs) lost through the week.
#BTC
Needs to reclaim at least one of these EMAs as support to avoid a drop into the $25k-$26k area$BTC #Crypto #Bitcoin pic.twitter.com/ywRkdM07uw— Rekt Capital (@rektcapital) October 12, 2023
GBTC claws back more lost ground
Ahead of the appeal deadline, Grayscale’s flagship investment fund, the Grayscale Bitcoin Trust (GBTC), continued to outperform.
Related: Did SBF really use FTX traders’ Bitcoin to keep BTC price under $20K?
The focus of the legal proceedings, GBTC will end up as a spot ETF, Grayscale has said, with an early victory for the firm seeing its fortunes turn around through Q2.
On Oct. 11, GBTC hit its smallest discount to net asset value — the Bitcoin spot price — since December 2021.
The discount, technically a negative premium, reached -16.44% before dipping slightly lower, per data from monitoring resource CoinGlass.
GBTC premium vs. asset holdings vs. BTC/USD chart (screenshot). Source: CoinGlass
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
