SEC is taking a cautious stand and while Bitcoin (BTC) traders digest the news, it did register decent gains. In the last week for example, it’s up 10 percent adding to week ending July 22 buy demand. This recovery is likely opening up doors for a bullish Q3 2018.
From the News
Perhaps the disapproval of Bats BZX Exchange by the US Securities and Exchange Commission (SEC) to list the Winklevoss Bitcoin ETF dominated headlines over the weekend. It might also the reason why the price of BTC took a slight hit, retraced a little bit stabilizing later as the market processed the nitty gritties of why the SEC disapproved the application.
Of course, the market instant interpretation was that Bitcoin didn’t stand a chance in the eyes of the SEC. SEC’s mandate is to” prevent fraudulent and manipulative acts and practices” in accordance to Exchange Act Section 6(b) (5). On top of that, they safeguard the interests of the investor. In their application, Bats BZX Exchange argued that the distributed and decentralized nature of Bitcoin trading would protect the system against fraud and or potential market manipulation.
However, considering the fast paced nature of cryptocurrencies trading and Bitcoin in particular, everything relies on technology. With technology, effective solutions would be devised for secure exchanges’ public audit. Additionally, innovative ways of injecting market liquidity which would in turn stabilize price.
Anyhow, what is important is that the SEC is open to the whole thing and not maintaining a fix stance on the whole issue. In their analysis, they found the Bitcoin markets are in “early stages of their development” and as time goes by, “regulated Bitcoin-related markets may continue to grow and develop”. This is overly positive for the market and we project further gains this quarter.
Bitcoin (BTC) Technical Analysis
Weekly Chart
Looking at the chart, my first look is not only price. As we can see, Bitcoin is in recovery mode. Most importantly for buyers is that week ending July 22 bull candlestick was confirmed last week.
Not only did that validate that double bar bullish reversal pattern from right at main support but the fact that there is spike in volumes reveals a little bit of the general market sentiment.
Volumes hint at the level of demand and demand on the other hand will likely push prices towards our first level of take profits at $10,000. This is as first highlighted in our previous Bitcoin trade plan.
Daily Chart
In line with our previous Bitcoin (BTC) technical analysis, our Bitcoin buys are live. As such, the best thing to do now is to lock in some profits. I would recommend that to be at $7,800, our intermediate support line.
With Bitcoin prices trending above those levels, $7,800 acts as our previous resistance now support and a best price tag to load on dips.
Alternatively, assuming there is a nice follow through, buyers can set their triggers at July 24 highs at $8,500. Nice stops would be at $8,000 with easy first targets at $10,000.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.
The post Bitcoin (BTC) Technical Analysis: SEC’s Bitcoin ETF Rejection Tempering Bulls appeared first on NewsBTC.
by Dalmas Ngetich on July 30, 2018 at 05:34AM
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