SEC approval of Cboe BZX 3x Bitcoin fund supports Bitcoin after consolidation near support

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Bitcoin drops 0.36% today to $85,518

Highlights

The SEC approved a Cboe BZX rule change allowing six new Volatility Shares funds, including a 3x leveraged Bitcoin fund, expanding US investment product options.
This regulatory approval broadens access for institutional and retail investors seeking amplified Bitcoin exposure and is expected to support greater liquidity.
BTC/USD trades below key short- and medium-term moving averages with intraday bearish momentum and is forecast to consolidate between $84,564 and $86,747 over the next two to three days.

Leveraged fund approvals as SEC action lifts market access

The main regulatory development came on October 2, 2026, as the SEC approved a Cboe BZX rule change that allowed the listing of six new Volatility Shares funds, including a 3x leveraged Bitcoin fund, according to Coindesk. This move expands the set of available investment products in the US, broadening market accessibility for both institutional and retail investors seeking amplified Bitcoin exposure. The approval is likely to add liquidity and attract a wider range of trading strategies, further shaping sentiment in the Bitcoin market.

Mixed downside signals as short-term momentum breaks

BTC/USD is trading below the MA-20 and MA-50 on the H1 timeframe, while remaining above the MA-200 on the daily chart. The Ichimoku Kijun sits at $85,848 as immediate resistance. On the indicator front, the H1 MACD issues a sell signal and ADX is neutral, with both RSI and CCI also signaling a sell condition. Stochastic RSI points to a potential short-term buy, whereas Bull/Bear Power is oversold and the Awesome Oscillator remains negative, aligning with prevailing intraday seller momentum and confirming mixed but overall downside bias based on current signals.

Downside bias prevails as range-bound trade expected

Over the next two to three days, BTC is expected to trade within a range of $84,564 to $86,747, reflecting a typical volatility band relative to current levels. The baseline scenario calls for a consolidation within this interval. An upward break above immediate resistance at the Kijun ($85,848) may trigger movement toward the upper end of the band, while a decisive move below $84,564 would point to further weakness. Probability estimates marginally favor the downside, with a 55% chance of a lower move versus 45% for a rebound.

Viktoras Karapetjanc, Traders Union expert, sees the SEC’s approval of new leveraged Bitcoin funds as a constructive signal for broader market participation. He believes this regulatory step could help deepen liquidity and attract institutional interest, supporting Bitcoin’s longer-term profile. Near term, the analyst expects consolidation between $84,564 and $86,747, with technicals indicating minor downside pressure. Karapetjanc notes that sentiment could shift quickly if resistance at $85,848 is reclaimed. "With the regulatory backdrop improving, Bitcoin’s structural outlook remains positive even if short-term trading stays rangebound for now."

Earlier, analysts noted that companies like Strategy are directing increasing capital toward instruments such as preferred stock indicating a diversification of priorities beyond pure Bitcoin accumulation. With the recent approval of leveraged Bitcoin funds and a prevailing short-term downside bias, traders should monitor the $84,564 support level as a key inflection point for additional price weakness.

Source of Data: BTC Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.