Bitcoin
and other cryptocurrencies were maintaining gains after a big rally on Tuesday following a pro-crypto court ruling. But bulls should take note: Analysts are still eyeing a bearish outlook for digital asset prices, which remain below key levels.
The price of Bitcoin has risen 5.5% over the past 24 hours to above $27,400, having briefly rallied above $28,000 on Tuesday after crypto asset manager Grayscale won a major appeal against the Securities and Exchange Commission (SEC). Bitcoin previously had been trading around $26,000, where it held for almost two weeks after a selloff from near the psychologically important $30,000 mark—so the largest digital asset remains below important technical levels.
“Bitcoin pulled back to $27,400, close to the 200-day and 200-week moving averages. The real battle for the long-term trend has just begun, and the next few days could provide a crucial signal for weeks and months ahead,” said Alex Kuptsikevich, an analyst at broker FxPro.
Bitcoin snapped out of a lull that has seen it lag the
Dow Jones Industrial Average
and
S&P 500
in recent weeks after a closely watched court decision. A federal court ruled that the SEC acted arbitrarily when it denied Grayscale’s attempts to convert its Bitcoin trust—which owns the token itself—into an exchange-traded fund (ETF), all but clinching the eventual approval of such a fund.
Approval of a spot Bitcoin ETF has been heralded as a critical catalyst for digital assets that could usher in a new wave of retail and institutional interest in cryptos. Hype over a Bitcoin ETF has been building since June, when financial stalwarts like
BlackRock
(ticker: BLK) and Invesco made their own applications for one. W hile approval has not yet happened, it never has looked more likely.
However, analysts don’t yet see major upside for Bitcoin prices.
“The next targets [for Bitcoin] in this case would be $29,300 and $30,000, respectively. However, it’s more likely that prices will remain within a range today,” said Rania Gule, an analyst at broker XS.com. “Stability below the range of $28,100 to $30,000 could support the primary downward price trend. By technical indicator signals, potential downward targets in the medium term could be at $27,000, $26,470, and $25,897, respectively.”
The same goes for the medium-term as well, with Bitcoin continuing to languish below the $30,000 level and still trading at just a fraction of its November 2021 all-time high near $69,000.
“Our intermediate-term indicators still point lower, supporting more consolidation in the coming weeks, similar to late May/early June. Initial resistance is at the 50-day moving average around $28,800,” said Will Tamplin, an analyst at technical research firm Fairlead Strategies.
Beyond Bitcoin,
Ether
—the second-largest token—advanced 4% to $1,720. Smaller cryptos or altcoins were also in the green, with
Cardano
climbing 1.5% and
Polygon
gaining 4%. Memecoins were also stronger, with
Dogecoin
jumping 4% and
Shiba Inu
rising 2%.
Write to Jack Denton at [email protected]
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