Bearish view
- Sell the BTC/USD pair and set a take-profit at 25,255.
- Add a stop-loss at 26,500.
- Timeline: 1-2 days.
Bullish view
- Set a buy-stop at 26,150 and a take-profit at 27,000.
- Add a stop-loss at 25,000.
Bitcoin and other cryptocurrencies were in a tight range on Tuesday as demand and volatility slumped. The BTC/USD pair was trading at 26,000, where it has been in the past few days.
BTC consolidation continues
Bitcoin has been flat in the past few days as investors wait for the next important catalyst. The next important news will be on Bitcoin ETF. Last week, the SEC suffered a major blow after a court sided with Grayscale.
In the aftermath, and as expected, the agency requested more time to review the proposals by the likes of Blackrock and Invesco. Most analysts believe that the SEC will now be forced to approve some of these funds in a bid to avoid another humiliation in court.
Besides, all the new ETF proposals have included a surveillance clause to prevent market manipulation. Still, there are concerns about the impact on a spot ETF to Bitcoin prices in the long term.
Some analysts believe that a spot ETF will lead to more inflows by large institutional investors. Also, a spot fund offers tax benefits and the ability for users to borrow against it.
Other analysts believe that the spot ETF’s impact on BTC prices will be limited for a while. Besides, institutional investors already have access to BTC through the futures ETF and Greyscale Bitcoin Trust.
The BTC/USD will likely consolidate because there will be no major economic data from the United States on Tuesday. Using the most recent numbers, the futures market expects that the Fed will leave rates unchanged in its September meeting.
BTC/USD technical analysis
The BTC/USD pair has moved sideways in the past few days. It has remained at the crucial support level at 26,000, which is a few points above the crucial support level at 25,254. The pair has also dropped slightly below the 50-period moving average.
Bitcoin’s volume in centralized exchange has also slipped as traders wait for the next important catalyst. Therefore, the pair will likely remain in this range on Tuesday unless important news comes up. The key support and resistance levels to watch will be at 25,255 and 27,000.
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