The price of Bitcoin (BTC) has posted marginal gains when writing, but buyers have yet to firmly put their foot down looking at price action in the daily chart. There must be a strong leg up lifting the coin above $27k if BTC has a chance of reversing last week’s losses. For now, the path of least resistance remains southwards, and the bear bar of August 17 shapes the current preview.
BTC may slip below $25.7k and $25k if sellers press on in a move that might catalyze the sell-off, pushing the coin deeper into red, towards $20k. Of note, attempts of higher highs are with lighter trading volumes, indicating weakness and cementing sellers’ lead.
Inflation and ETF on Focus
In the medium to long term, analysts are bullish on Bitcoin and expect prices to recover. However, before then, sellers are in a solid position to shape the immediate formation. Bulls are optimistic about the possible approval of a Bitcoin exchange-traded fund (ETF) in the coming months.
The application of Wall Street heavyweights, including BlackRock, increased the odds of approval.
Recently, Bloomberg analysts raised the probability of the Securities and Exchange Commission (SEC) green-lighting any of the multiple applications to over 75%. If it happens and there is a Bitcoin spot ETF available for institutions in the country, BTC may rally.
As of now, inflation is being watched closely, but analysts think the Federal Reserve might expand the money supply, massively lifting finite assets like Bitcoin in the process.
Bitcoin (BTC) Price Analysis
BTC is under pressure at spot rates. The short and medium-term trend is defined by the bear bar of August 17, which had high trading volumes. The conspicuous, high-volume bar still confirms the current price action.
Bitcoin is capped at around $27k on the upper end and $25k on the lower end. As prices consolidate, the path of least resistance remains southwards from an effort-versus-result perspective.
Aggressive traders looking to counter the bear trend can wait for a clean, high-volume break above $27k before loading on dips, targeting August 17 highs of $28.7k.
Conversely, if there is trend continuation and BTC loses $25k, conservative traders can double down and ride the sell-off, targeting $20k and $18k in the short to medium term.
Technical charts courtesy of Trading View.
Disclaimer: The opinions expressed do not constitute investment advice. If you wish to make a purchase or investment we recommend that you always conduct your research.
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