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Bitcoin, Ethereum Rally on SEC News; Charts Remain Negative

Bitcoin, Ethereum Rally on SEC News; Charts Remain Negative

Nick Cawley, Senior Strategist

Cryptocurrency News and Talking Points

- SEC classification say that Bitcoin (BTC) and Ethereum (ETH) are not securities.

- Market rally flounders as technical resistance remains in place.

IG Client Sentiment how clients are currently positioned in a wide range of cryptocurrencies and how positioning has changed over the last week – and positioning continues to look highly stretched.

Bitcoin, Ethereum Prices Rally on SEC Classification

According to the SEC’s William Hinman, the two largest cryptocurrencies, Bitcoin and Ether, are not securities but many ICOs are securities and they will fall under US securities regulations. The BTC and ETH ruling mean that these tokens are allowed to be traded on unregulated exchanges while many ICOs may struggle to find exchanges willing to host them. Bitcoin and Ether rallied on the news but the market remains negative overall. The CFTC is still investigating the cryptocurrency market over claims of market manipulation, while the role of Tether is also under the microscope.

Bitcoin, Ethereum Charts Remain Weak

Bitcoin’s pullback to a current level of $6,570 still leaves the token over $1,000 lower than prices seen last Sunday and below the 20-, 50- and 200-day moving averages, a negative set-up. BTC is also battling various resistance levels – previously support levels – and needs to make a clean break above the $7,050 - $7,250 zone to regain bullish sentiment. A move below Wednesday’s low around $6,130 opens the way to $5,932 and $5,622.

Bitcoin Daily Price Chart (January – June 15, 2018)

Ethereum (ETH), currently changing hands at $505, has bounced back from Wednesday’s low around $450 but again the pullback lacks conviction and trades below all three moving averages. Resistance remains at $568 while support is pegged at $497, $397 and $359.

Ether Daily Price Chart (November 2017 – June 15, 2018)

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Cryptocurrency Trader Resources

If you are interested in trading Bitcoin, Bitcoin Cash or Ethereum we can offer you an informative Introduction to Bitcoin Trading Guide.

What’s your opinion on the latest cryptocurrency moves? Share your thoughts and ideas with us using the comments section at the end of the article or you can contact me on Twitter @nickcawley1 or via email at nicholas.cawley@ig.com.

--- Written by Nick Cawley, Analyst.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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