Bitcoin Slumps After SEC Reject Winklevoss ETF Proposal Again
Bitcoin (BTC): Prices, Charts and Analysis
- Bitcoin off $600 from recent high after SEC announcement.
- Rumor driven rally likely to unwind further.
IG Client Sentiment Reportshows that retail remain heavily long BTC by a ratio of 3.8 to 1.
Bitcoin (BTC) Rally Shackled by Negative SEC Ruling
The US Securities and Exchange Commission (SEC) sent BTC back below $8,000 Friday after it rejected a proposal by the Winklevoss brothers for a BTC ETF for the second time. The SEC said that the ruling was not based on the bitcoin/blockchain technology but on whether the markets are ‘resistant to manipulation’ and acts of fraud. The SEC is still considering the status of a variety of cryptocurrencies and their rulings will continue to move the marketplace in the future.
The recent rumor-driven rally pushed Bitcoin back to a multi-week high just under $8,500, a near 40% rise in a month. We warned on Wednesday of the Buy the Rumor – Sell the Fact nature of the market while the RSI indicator was trading in heavily-overbought territory.
Support likely around $7,700 before $7,000 comes into play – late May swing low and 20- and 50-day moving averages – while this week’s high print at $8,481 may be difficult to break in the short-term.
Bitcoin (BTC) Daily Price Chart (December 2017 – July 27, 2018)
We covered Bitcoin, Bitcoin Cash, Ripple, Ether and Litecoin at this week’s Weekly Cryptocurrency Webinar on Wednesday and highlighted support and resistance levels for the five cryptocurrencies – you can access a copy of the webinar here
You can contact me on Twitter @nickcawley1 or via email at firstname.lastname@example.org.
--- Written by Nick Cawley, Analyst.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.