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After winning the lawsuit against SEC filed by Grayscale on August 29, the price of Bitcoin soared above $1700 within minutes, which was well received in the entire cryptocurrency market. However, today, the price of Bitcoin is experiencing a decline and its future direction remains uncertain due to the spread of news regarding SEC’s appeal against the court decision. Although the inability of Bitcoin price to surpass the daily EMA 200 average may seem negative, there are several positive factors that stand out on the daily chart.
Bitcoin Daily Price Analysis
The first notable formation in the Bitcoin chart is an ascending channel formation that lasted until the major drop last week. Although the downward break of this formation is currently unfavorable for the Bitcoin price, it would be more beneficial to look at the weekly closing before making any decisions regarding an investment as valuable as Bitcoin.
Since the first week of January, the fact that the price has not fallen below the EMA 200 average seems to be one of the major factors contributing to the increase in the Bitcoin price. However, since the drop experienced last week, the price remaining below the EMA 200 acts as the main reason for suppressing the price. The first important move to watch out for is a close above the EMA 200 followed by a re-entry into the channel formation. If these do not occur, the price will continue to be suppressed and therefore continue to fall.
Bitcoin Support and Resistance Levels
The most important support levels to be monitored for Bitcoin are respectively $25,666 / $23,924, and $19,848. Especially the fact that the $25,666 level has been acting as support since March indicates the importance of this level. A daily closing below the $19,848 level could cause the price to drop below $17,000.
The most important resistance levels to be followed are respectively $29,242 / $31,704, and $37,581. If the Grayscale case paves the way for ETF applications, an incredible rally period could begin for Bitcoin. It is crucial for Bitcoin to surpass the EMA 200 average of $27,605 and make a daily closing above this level.
