The price broke the $27,500 resistance zone, testing the $28,000 resistance zone.
Bitcoin reacted positively to the historic win of Grayscale after an appeals court said the US Securities and Exchange Commission (SEC) cannot deny the asset manager’s application for a spot Bitcoin exchange-traded fund (ETF).
BTC pumped up to 7% on Tuesday before slowing down.
Bitcoin reacts positively
Bitcoin price surged following a win at the DC Circuit court. The judge ruled in favor of Grayscale Investments, effectively vacating the SEC’s previous denial of Grayscale’s spot Bitcoin ETF proposal.
The price of BTC jumped to as high as $28,040 or a 7.3% gain after closing the precious day at around $26,100.
The price broke the $27,500 resistance zone, testing the $28,000 resistance zone. Following the surge, the price is now correcting its gains, with the price trading at $27,427 at press time.
A fresh increase might need to send the price above $28,000. If it does, the next major resistance will be at around $29,200, above which could mean a steady increase for BTC.
Read more: Bitcoin surges as stocks enjoy upward rally ahead of the Fed’s Jackson Hole speech
However, if further decline is witnessed, the Bitcoin’s immediate support will be close to the $27,000 level. The next major support will be $26,700. Any further fall will crash the price towards $26,000.
Considering the current weak hands in the market, BTC is closer to $26,000 than it’s $30,000. Also, September might possibly be a bad month for Bitcoin if the Federal Reserve decides to hike interest rates again as it tightens its grip on inflation in the US.
If the SEC decides to approve the numerous spot Bitcoin ETF proposals in its custody, it would be bullish for BTC. If not, a depressed market may crash the price to losses close to $20,000.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
