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On a bearish trend for the last few weeks, bitcoin got back above its 200-week moving average on the news that Grayscale was victorious as it sued the SEC over its reasoning on failing to approve a spot ETF.
Justice system still solid
As politics and the economy drag the U.S. through the mud it appears that at least the judicial system is still able to function properly and is above the sometimes heavy-handedness of the government or its financial agencies.
The judge decided in favour of Grayscale, given that the SEC had not been able to fully explain how futures ETFs were materially different from a spot ETF.
Bitcoin released from its shackles
When this news broke bitcoin spiked sharply to the upside. At around 3pm BST a one hour candle shot up over 6%, subsided a little, and then continued to reach as high as 8.2% within a 3-hour period.
Most importantly, the surge took bitcoin back above its 200-week and 200-day moving averages which it had lost a couple of weeks previously. The battle will now be on to stay above these moving averages and once more reclaim its bull momentum.
Investors will now be asking themselves if they climb into this bitcoin pump or if they adopt a wait-and-see approach. It any are convinced in the upwards price action then today’s test of the moving average would perhaps be a good time to get in.
Bulls or bears?
However, the bears will not be giving in without a fight and might believe they still have the upper hand. Bitcoin losing the trendline it had been respecting since the beginning of the year, and also dipping and confirming below the 200-week moving average were huge battles to win.
Be that as it may, the bull/bear war is still very much on. Bitcoin bulls will be hoping for a weekly close above the 200 MA, and a monthly close (tomorrow) the same. Bitcoin has quite a long wick below on the monthly so this could also be a sign that the price is being bought up.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.