Bitcoin is correcting due to lack of growth incentives

29 September 2023 142
Bitcoin is correcting due to lack of growth incentives

Bitcoin has been trading in a wide 10% sideways range for over a month. Now the quotes are getting close to the upper boundary. The main question for the crypto community is whether the Bitcoin ETF is approved. Most likely it is. However, it will take time. If the Bitcoin ETF is approved, there will be a lot of money flowing into the crypto market from various organizations.

 

The United States Securities and Exchange Commission (SEC) has pushed back the decision on the spot Bitcoin ETF applications of BlackRock Inc., Invesco Ltd. and others seeking to list the first Bitcoin exchange-traded fund in the US.

The delays come even though the SEC had until mid-October to weigh in on the applications. Regulators had earlier this week postponed a decision on a similar application from 21Shares and Cathie Wood’s ARK Investment Management.

Grayscale Investments is also seeking to debut a Bitcoin ETF. The company's recent legal victory in federal court reassures investors that such a structure would soon be approved.

Nevertheless, the current situation remains uncertain, so bitcoin has no incentive to continue rising at the moment.

 

The potential US government shutdown also affected the Bitcoin ETF decision.

Jared Bernstein, member of the White House Council of Economic Advisers, spoke on the state of the US economy at the Economic Policy Institute (EPI).

A key concern is a possible government shutdown. Also of interest are the Federal Reserve's (Fed) tightening of monetary policy, a major strike by automakers, and the resumption of student loan payments.

Yesterday, House Speaker Kevin McCarthy rejected a Senate stopgap funding bill. As a result, there might be a government shutdown.

 

According to the technical analysis, the price of bitcoin approached key resistance levels. Now a corrective movement is possible amid the absence of fundamental drivers of growth. The downside target is the 0.236 Fibonacci level from the entire correction from the highs. It corresponds to the price of $26,450. A stop-loss should be placed at the breakout of the key resistances and growth to $27,500.

 

Decrease in bitcoin’s price:

Take profit — 26,450

Stop-loss — 27,500

This content is for informational purposes only and is not intended to be investing advice.

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