The largest cryptocurrency by market capitalization, Bitcoin, has fallen below $26,000 after experiencing seesaw movements this week, returning to its initial level before Grayscale’s bullish Bitcoin ETF news bolstered the cryptocurrency markets.
Bitcoin fell to lows of $25,548 in today’s trading, extending its slide from Tuesday’s high of $28,184 as excitement faded on the Grayscale news.
The United States Securities and Exchange Commission’s (SEC’s) decision to postpone several applications for Bitcoin spot exchange-traded funds (ETFs) prompted a change of heart, with Bitcoin losing $2,500 in two consecutive daily red candles on Aug. 30 and 31.
On Thursday, the SEC deferred filings from Bitwise, VanEck, Invesco, Valkyrie and BlackRock, extending the deadline to accept or disapprove six ETF decisions within 45 days, citing the need for more time to evaluate the applications.
Bitcoin could reach $23K
Bitcoin was down 4.41% in the last 24 hours to $25,843 at the time of writing. Bitcoin has reverted to the lower portion of its trading range, increasing the likelihood of further declines.
Crypto analyst Ali highlights the precarious situation Bitcoin seems to be in, highlighting the lack of support slightly beneath where Bitcoin presently trades.
Citing Glassnode’s UTXO realized price distribution (URPD) metric, which functions as a roadmap for likely price support and resistance levels, Ali states a concerning fact about Bitcoin’s current standing.
According to him, on-chain data suggests that BTC lacks strong support below the $25,400 mark. Ali added that if BTC breaks below this threshold, the crypto asset could swiftly correct down to $23,340.
The odds are against Bitcoin bulls in September, which has historically produced negative returns for BTC. That said, Bitcoin bulls would seek to gain a foothold above $25,400 to push for a retest above $28,500 to start a whole new rally.