Bitcoin’s Rising Momentum Encounters Challenge Amid Declining Trading Volume

• Bitcoin Trading Volume falls below 55% in the last 24 hours.
• Bloomberg analysts estimate a 75% likelihood of Bitcoin ETF approval this year.

Following a notable triumph against the United States Securities and Exchange Commission (SEC), which sought to convert the Grayscale Bitcoin Trust (GBTC) into a publicly traded Bitcoin exchange-traded fund (ETF), the charts for major cryptocurrencies turned positive. However, in an unexpected development, the coins swiftly reverted to their earlier downward trends. This was particularly evident with Bitcoin, the top cryptocurrency by market capitalization, which rose by over 5.67% yesterday, only to decrease by 0.82% in the last 24 hours.

Despite this downturn, the bullish momentum gained on August 29 from the victory, which propelled its price from $25,912 to $28,089, has helped Bitcoin sustain its overall upward trend. It is noteworthy that Bitcoin had been under significant bearish pressure for more than two months.

In the meantime, Bitcoin’s trading volume, which ranks second only to Tether, saw a substantial drop of 55% in the past 24 hours. Analysts propose that Bitcoin’s failure to surpass the $30,000 threshold may have adversely impacted investor sentiment, leading to uncertainty regarding whether the bullish momentum triggered by the victory could be overshadowed by bearish influences.

Bullish Hope

Conversely, within the community, a strong sense of bullish optimism remains. This is particularly driven by the anticipated approval of a Bitcoin ETF, which has gained support and excitement. Industry experts bolster this bullish outlook through their analyses and insights. Notably, analysts at Bloomberg have raised the probability of an approved spot Bitcoin ETF by the end of 2023 following Grayscale’s success against the federal securities regulator.

In a post on X (formerly Twitter) dated August 30, Bloomberg senior ETF analyst Eric Balchunas indicated that the probability had increased from 65% to 75% due to the unanimous and decisive nature of the recent United States Court of Appeals Circuit ruling in favor of Grayscale. Bloomberg analysts James Seyffart and Elliot Stein noted in a separate commentary that the judges’ unanimous dismissal of the SEC’s arguments and the agency’s potential difficulty in justifying further rejections contribute to this heightened likelihood.

Additionally, United States presidential candidate Vivek Ramaswamy commended Grayscale’s victory, criticizing the “shadow” U.S. government and attributing the success to the role of U.S. courts as a final safeguard for retaining cryptocurrency innovators within the nation.

Will Bitcoin Experience a Bullish Rally?

An examination of Bitcoin’s recent price trends reveals a continuing bullish pattern on the daily chart. The short-term 9-day exponential moving average (EMA) at $26,850 indicates prevailing bullish sentiment, similar to Bitcoin priced at $27,237. The Relative Strength Index (RSI) remains at 47, suggesting a neutral position.

BTC Price Chart, Source: TradingView

Bitcoin’s recent breakout on August 29 has shifted its range to the upside. This implies that the price may oscillate within the broad range between $24,800 and $31,000 for a period. If buyers can uphold the breakout level of $26,833 and convert it into support, this will indicate bullish strength. The BTC/USDT pair may initially ascend to the 50-day simple moving average (SMA) at $28,689, and then attempt a rally towards $31,000.

Conversely, if bears succeed in pushing the price below $26,833, it would signify their dominance and a tendency to sell during recovery attempts. In this case, the pair could potentially retest the strong support level at $24,800.

Will BTC be able to maintain the bullish momentum? Share your thoughts by tweeting us at @The_NewsCrypto