Bitcoin (BTC) Price: Bought the Rumor, Now Sell the Fact?
Bitcoin (BTC): Prices, Charts and Analysis
- Bitcoin is in overbought territory and may consolidate at a lower level before any push higher.
- SEC says will take extra time to look at Bitcoin ETFs.
IG Client Sentiment Reportshowretail are 80.0% net-long BTC – a contrarian bearish signal – but recent positional changes give us a mixed trading bias.
Bitcoin (BTC) Rallies into Overbought Territory
The technical set-up for Bitcoin looks negative in the short-term with the RSI indicator flashing a heavily-overbought warning sign. BTC has rallied around 40% in the last month with the latest push based on news that the SEC was mulling over various Bitcoin ETF proposals. The SEC has received various ETF proposals, including one from the CBOE, and was thought to announce their decision on one ETF in mid-August. However, according to the US government publishing office, the SEC will take longer to approve or disapprove the listing and trading of the Direxion Bitcoin ETF. According to the SEC, Direxion filed for approval in January 2018 and the decision is not expected on September 21. The VanEck and SolidX ETF proposal is currently under discussion.
The recent cryptocurrency rally, driven mainly by Bitcoin, has faltered, although the market remains within touching distance of a $300 billion market capitalization, the highest level since mid-June. The altcoin rally, fueled by rumors of listings on US exchange Coinbase, has also petered out although most of the named altcoins have kept a majority of their uplift.
On the four hour chart, support for BTC starts at the 20-day moving average, currently at $7,845, before the 50-day ma at $7,520.
Bitcoin (BTC) Four Hour Price Chart (June 17 – July 25, 2018)
We cover Bitcoin, Ripple and a range of other cryptocurrencies, at our Weekly Cryptocurrency Webinar on Wednesday at 12:00pm.
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--- Written by Nick Cawley, Analyst.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.