Bitcoin regained its position within a sideways channel the day before yesterday but promptly slipped below it again. Over the past few weeks, the cryptocurrency traded below its usual range, leading us to establish a second sideways channel with boundaries at $26,900 and $30,275. Meanwhile, volatility continues to decrease, which could signal an impending surge. This has been Bitcoin's pattern over the last year: a flat period followed by a surge, then another flat period and another surge. Consequently, we now await an exit from the second sideways channel.
Currently, bears are not exerting excessive pressure on the cryptocurrency, and many traders and experts are brimming with optimism. We prefer not to succumb to market sentiment. Thus, we believe that technical analysis is far superior. On the 4-hour time frame, there are still no signals for buying. Hence, we do not see any reasons to initiate long positions.
Meanwhile, the head of the investment fund Ark Invest, Cathie Wood, stated that the US Securities and Exchange Commission (SEC) could greenlight several applications for introducing Bitcoin spot instrument ETFs concurrently. She indicated that all submitted instrument applications were identical, and the SEC did not have substantial reasons to approve some while rejecting others. According to Wood, it all boils down to marketing. The company that achieves significant advertising results for its instrument will garner more investments in the new tool.
Hearings regarding the approval of the new instrument are set for August 13, but Wood does not anticipate the SEC making any decisions on that exact day. Delay is more likely to occur. Notably, initial applications from companies were denied due to insufficient information on the joint observation mechanism. Many experts believe that the approval of a Bitcoin exchange-traded fund will be a turning point for Bitcoin. Institutional investors will be able to safely invest in the primary cryptocurrency. Many expect substantial cryptocurrency growth in light of this event.
On the 4-hour time frame, the cryptocurrency declined. This drop may extend for several more weeks. However, the pair is already hovering within the sideways channel. It is better to trade based on them while keeping the daily time frame targets in mind. The correction is not yet complete at this moment, but it remains quite sluggish. Short positions should not be substantial. In the near future, Bitcoin could surge if it receives news of Bitcoin ETF approval.