Bitcoin (BTC) price has once again got stuck within a very narrow range. The pioneering cryptocurrency is showing very little volatility as the volume decreased in the overall crypto market. The weakness in the leading digital asset has triggered a sell-off in altcoins which are trading close to their yearly lows.
The sideways BTC price action continues as the liquidity dries up in the crypto markets. On Tuesday, the magic internet money fell 0.29% after a 0.57% drop in its previous session. Technical analysis predicts a massive downside if the bulls fail to hold a key level on the chart.
BTC Price Tumbles As News Gains Fade
On 29th August, Greyscale won its lawsuit against the Securities and Exchange Commission (SEC). Greyscale sued the SEC after the regulator rejected its proposal to convert Bitcoin Trust into a spot Bitcoin ETF. However, the court ruling declared the rejection unlawful, forcing the SEC to review Greyscale’s proposal.
This court win is seen as a major win for the crypto industry as it comes when at least 8 spot Bitcoin applications are awaiting approval. The regulator is pushing the deadlines on all ETFs ahead without giving any solid reason. However, after Greyscale’s victory, a Bitcoin ETF could be only a matter of time.
Bitcoin price surged more than 5% when the court ruling came out. However, most of the gains were lost within 48 hours as the SEC postponed the ETF applications to their next deadline.
Bitcoin Dominance Fell In August
The following market BTC.D chart shows Bitcoin’s share in the total market capitalization of cryptocurrencies. After a 2.67% drop in July, BTC dominance fell another 1.27% in May. Most of the time, a decrease in BTC.D usually results in a flow of capital in altcoins. However, this hasn’t been the case this time.
USDT (Tether) is currently the biggest stablecoin by market capitalization. A look at the Tether market dominance (USDT.D) reveals that money is flowing into the stablecoin from Bitcoin. The following chart shows the inverse correlation quite clearly.
Bitcoin Price Prediction
Technical analysis of the BTC price chart at daily timeframe reveals that it is stuck inside the $25,125-$26,800 trading range. A breakdown below this trading range will push it into a previous bigger range, which is visible on the following chart.
The previous range high of $25,125 is a major line in the sand for many short and mid-term traders. An acceptance below this level will open doors for a major correction to $21,000, which is the middle of this trading range. The only way to avoid this bearish outlook is to break above the 200 MA which lies at $27,574.
Source: https://www.analyticsinsight.net/bitcoin-price-hangs-by-a-thread-as-btc-bears-eye-18-drop/