How SEC ETF decision impacts BTCUSD?


23 August, AtoZ Markets –  The Bitcoin price is trading near $ 4200 with the market cap of $110 Billion according to the CryptoCompare price index. The last week seems quite stable for the Bitcoin as the price changed 0.6991% with a total volume of over $ 3.06 Billion. Moreover, in the previous 1 Month, the price has moved by $ -1,551.24 (-19.41%) with a total volume of over $ 16.55 Billion. Today, the U.S. Securities and Exchange Commission (SEC) rejects the two ETFs filed by ProShares that track bitcoin futures contracts, another from GraniteShares. But the Bitcoin and other cryptocurrency appear unaffected by the SEC ETF decision as the price seems a marginal change. Will the Bitcoin price hike above $ 7000 levels in coming days? Or a bearish trend to continue?

Bitcoin Weekly Technical analysis: How SEC ETF decision impacts BTCUSD?

The SEC ETFs decision was an essential factor for the cryptocurrency industry, which could see an accelerated sell-off in the next few days. The expectation is that the Bitcoin ETFs would attract institutional investors. It could also affect the thinking of BlackRock Inc. and other giant institutional investors who are interested in the crypto industry.

In making its decisions, the SEC did not talk about the Bitcoin value and other currencies. Instead, it based its thinking on risks regarding the crypto sector which include fraud and market manipulation.

The rejection for ETFs was also a setback to the CBOE and CME, the two most significant futures exchanges in the world. Last year, the two organizations introduced Bitcoin futures, which have underperformed since then.

Moving towards the technical analysis, the 100 SMA is below the longer-term 200 SMA to show that the path of least resistance is downside. The BTCUSD pair might make a bullish move in the short-term as the gap between the moving average narrowed. However, the STOCHRSI(14) to indicate that the Bitcoin in the overbought zone as we see a vast trading volume in the last few days.

Yesterday, we saw a hawkish drop in Bitcoin price from the $ 6430 highs towards a drop below the 23.6% Fibo. retr. Zone towards $ 6250 levels. The BTCUSD pair is trading below the 38.2% Fibo retr. Zone, but if the pair tends to move above this zone than a significant pull towards the $6850 – 7000 could be seen in coming days.

  • The CCI(14) valued at 45.78 which signify “Neutral” signal in the daily timeframe. 
  • The STOCHRSI(14) – Overbought in the daily timeframe.
  • The ATR(14), the BTCUSD pair is Less volatile.

BTCUSD Daily Pivot Points

The Bitcoin has significant daily support near $6110.2 level and resistance near $6742.2 level.