Fun

Bitcoin Price Looks North Despite SEC’s Latest ETF Rejection

News Feed - 2019-10-10 08:10:20

View Bitcoin’s short-term bullish view remains intact. Daily chart indicators are biased bullish, while the 4-hour chart is reporting a bullish reversal pattern. So BTC could rise to $9,000 in the days ahead. The bullish case would weaken if prices drop below key support at $8,110.


Bitcoin (BTC) continues to look north and may rise to $9,000 in the short-term despite a U.S. regulator’s decision to reject a bitcoin exchange-traded fund (ETF) proposal.


The U.S. Securities and Exchange Commission (SEC) on Wednesday announced that the ETF proposal filed by Bitwise Asset Management in conjunction with NYSE Arca did not meet the necessary requirements to prevent market manipulation and illicit activities.


The top cryptocurrency by market value hit a two-week high of $8,708 on Bitstamp and retreated to levels below $8,550 before CoinDesk reported the SEC’s decision at 21:45 UTC yesterday.


However, BTC remained bid following the negative news and has been restricted largely to a narrow range of $8,500–$8,650 in the hours since.


The cryptocurrency’s resilience is not surprising, as the market had set its bar of expectations low following the regulator’s repeated rejection of various ETF proposals over the last 12 months. Further, the low odds of the SEC approving the ETF had been priced in long ago, according to popular analyst Alex Kruger.


Bitcoin’s ability to hold on to gains may indicate Wednesday’s rally was primarily driven by the U.S. Federal Reserve’s decision to expand its balance sheet again.


Many observers had associated the price rise with speculation that the SEC might approve a new bitcoin-based ETF. If that had been the case, the cryptocurrency would have faced a sell-off following the regulator’s decision.


All-in-all, the doors remain open for BTC to continue rising amid the Fed’s move to increase its balance. As of writing, BTC is changing hands at $8,530 on Bitstamp, representing 3.54 percent gains on a 24-hour basis.


Short-term technical studies are calling a move higher toward $9,000, as seen below. Daily chart and weekly chart



Bitcoin jumped 5 percent on Wednesday, confirming the impending trend reversal signaled by Monday’s bullish outside-bar candlestick pattern.


The MACD histogram is now producing higher bars above the zero line, indicating a strengthening of bullish momentum.


Hence, BTC could find acceptance above the 200-day moving average (MA) resistance at $8,632 and rise toward the former support-turned-resistance of $9,049 in the short-term.


On the way higher, BTC could face resistance at $8,951 – the descending (bearish) 5-week moving average. 4-hour chart



BTC jumped above $8,531 yesterday, confirming a double bottom breakout on the 4-hour chart and opening the doors for $9,348 (target as per the measured move method).


So far, the follow-through has been poor and the cryptocurrency is now teasing a drop below the former resistance-turned-support of $8,531.


That, however, should not be a cause for concern for the bulls, as markets often shake out weak hands by testing dip demand before building on a bullish breakout.


Moreover, the short-term bullish case will remain intact as long as prices are holding above the higher low of $8,110 created on Oct. 9.


Disclosure: The author holds no cryptocurrency assets at the time of writing.


Bitcoin image via CoinDeskArchives; charts by Trading View

News Feed

Tether Launches Tokens Pegged to the Mexican Peso on Ethereum, Tron, and Polygon
Tether Launches Tokens Pegged to the Mexican Peso on Ethereum, Tron, and Polygon The stablecoin issuer Tether Operations Limited has announced the company has launched a new fiat-p
Fidelity, Sygnum partner with Chainlink to bring NAV data onchain
Ana Paula Pereira3 hours agoFidelity, Sygnum partner with Chainlink to bring NAV data onchainThe partnership will make the Net Asset Value of Fidelity’s $6.9 billion Institutional Liquidity Fund accessible onchain in r
Biggest Movers: MATIC, QNT Move Higher on Friday, as Cryptos Rebound
Biggest Movers: MATIC, QNT Move Higher on Friday, as Cryptos Rebound Polygon was a notable gainer on Friday, as cryptocurrencies moved higher following a turbulent week of trading.
David Attlee33 minutes agoDZ Bank, third-largest German bank, to start crypto custody for institutional investorsDZ Bank AG launches its own digital assets custody platform, built on blockchain.548 Total views2 Total sha
Best Crypto to Buy as Bitcoin’s Largest-Ever Options Expiry Set to Push the King Crypto over $110K
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Morgan Stanley advisers can officially pitch Bitcoin ETFs
Alex O’Donnell6 hours agoMorgan Stanley advisers can officially pitch Bitcoin ETFsFor now, the advisory platform is only recommending ETFs from BlackRock and Fidelity.2960 Total views3 Total sharesListen to article 0:0
Singapore High Court Grants Crypto Lender Vauld Temporary Protection From Creditors
Singapore High Court Grants Crypto Lender Vauld Temporary Protection From Creditors Singapore-based Vauld will have some breathing space after the country’s High Court gave
PeerNova Validates Shift to Enterprise Blockchain With $31 Million Funding
Blockchain startup PeerNova has received $31 million in a Series B round, bringing the company’s total fundraising to $74 million. Mosaik Partners led the latest investment,
SWIFT proposes a role for itself in a tokenized future on a unified ledger
Derek Andersen5 hours agoSWIFT proposes a role for itself in a tokenized future on a unified ledgerPut the technology you already have to new use, SWIFT advised the world. It had itself in mind.1294 Total views3 Total sh
Alice Ivey12 hours ago11 ChatGPT prompts for maximum productivityExplore the transformative power of ChatGPT’s customizable prompts for professionals seeking maximum productivity.12045 Total views52 Total sharesListen
Plan B’s Stock-to-Flow Price Model Denounced by Vitalik Buterin, Says Model Can Be ‘Harmful’
Plan B"s Stock-to-Flow Price Model Denounced by Vitalik Buterin, Says Model Can Be "Harmful" For a few years now, the pseudonymous creator of the popular stock-to-flow (S2F) bitcoi
Biggest Movers: SOL, TRX Nearly 10% Higher, as Crypto Prices Marginally Rebound
Biggest Movers: SOL, TRX Nearly 10% Higher, as Crypto Prices Marginally Rebound SOL was nearly 10% higher on Thursday, as crypto prices rebounded following recent losses. The rebou