Bitcoin tried to break out of its range last week, but the bulls could not sustain the higher levels. Bitcoin (BTC) is back inside the range and is trading near the $26,000 level. The price action of the past few days has formed two successive doji candlestick patterns on the weekly chart, indicating uncertainty about the next directional move.
Although it is difficult to predict the direction of the breakout, the downside may be limited in the near term on expectations that the United States Securities and Exchange Commission (SEC) may eventually approve one or more pending applications for a spot Bitcoin exchange-traded fund. Former commission chair Jay Clayton sounded confident when he said in a recent interview that “an approval is inevitable.”