Bitcoin’s Uphill Battle: Bears Persist as ETF Hope Dwindles

• Bitcoin’s trading volume dropped significantly by 31.10% in the last 24 hours.
• SEC’s Bitcoin ETF approval delay criticized for inconsistency by U.S. Representatives.

Bitcoin, the cryptocurrency with the largest market capitalization, has been facing sustained bearish pressure since the second quarter of this year. BTC has continued its downward trend, and on September 11, it reached a three-month low of $24,930. Although it briefly recovered to $27,488 on September 18, the past week has been highly volatile which led BTC to currently trade in the range of $26,090 to $26,331.

The sentiment among investors and traders is gloomy mainly due to delays surrounding the highly anticipated approval of the ARK Spot Bitcoin ETF. The SEC’s previous delay, announced on August 11, extended the decision deadline to November 11. However, the SEC has recently announced longer review periods for Bitcoin ETF applications from ARK 21 Shares and fund manager GlobalX, even though their original deadlines were set for October and November.

Meanwhile, in response to these delays, a group of four U.S. Representatives sent a letter on September 26 urging SEC Chair Gary Gensler to promptly consider the review process of the spot Bitcoin ETF. They criticized the SEC for what they perceived as inconsistent and discriminatory standards. Noting that the commission had approved ETFs linked to crypto futures but had not approved spot investment vehicles.

As of now, the SEC has not granted approval for any spot Bitcoin ETF to be listed on a U.S.-based exchange. Some experts had speculated that the SEC might reconsider pending ETF applications following its legal setback against Grayscale in August.

Amidst this, Bitcoin’s trading volume has seen a significant decline of 31.10% in the past 24 hours.

Where is Bitcoin Headed?

Analyzing Bitcoin’s recent price movements, it’s evident that a bearish trend dominates the daily chart. The 9-day exponential moving average (EMA) currently sits above the trading price at $26,406. The daily relative strength index (RSI) is at 45, signaling an almost oversold condition.

If Bitcoin’s price breaks below the $26,000 support level, it could reach $25,450. Further declines may lead to a test of the $25,000 level, establishing a new short-term low.