On Thursday, the Bitcoin rate rose sharply by more than 7% and reached its peak at $28,140. A similar movement was also seen in most other cryptocurrencies that followed the market leader.
A sharp leap upward in the price of the first cryptocurrency has led to a mass liquidation of traders' margin positions on crypto exchanges. According to the Coinglass analytical platform, short positions worth more than 80 million dollars were closed in just one hour after the growth had started.
The cryptocurrency market reacted to news of a court decision on the lawsuit filed by Grayscale, a company owned by entrepreneur Barry Silbert, against the U.S. Securities and Exchange Commission (SEC). The suit was filed by Grayscale in October 2021, when the regulator again refused to allow their Grayscale Bitcoin Trust (GBTC) fund to become a full-fledged exchange-traded fund (ETF) for Bitcoin.
The company's court victory might be a signal for the approval of other Bitcoin-ETFs, including a bid by financial giant BlackRock. The first decision on that request is expected to be made this Friday.
Another growth driver of the main cryptocurrency was the publication of poor data on open job vacancies in the U.S. and consumer confidence index. These indicators cooled expectations of further interest rate hikes by the Federal Reserve (Fed) this year.
The number of open jobs in the U.S. fell to its lowest level in two and a half years in July. This shows a gradual slowdown in the labor market.
Meanwhile, after two consecutive months of rising, the U.S. consumer confidence in August fell more sharply than expected due to renew inflationary concerns.
This lowered the value of the U.S. dollar and supported a variety of investment assets.
The BTCUSD quotes are correcting in a wide ascending corridor on the D1 timeframe. The price pullback from the channel support directs the Bitcoin rate towards the trend resistance.
Signal:
The short-term prospects for BTCUSD are to buy.
The target is at the level of 31 000.
Part of the profit should be fixed around the level of 29 180.
Stop-loss is placed at 24 550.
The bullish trend is short-lived, so choose a trading volume of no more than 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
