Bitcoin Price Defends Key Support Despite ETF Rejection

Bitcoin is teasing a minor rally at present, having defended key assist at $6,230 regardless of a string of dangerous information.

At press time, the main cryptocurrency is altering arms at $6,400 on Bitfinex – down three % on a 24-hour foundation. In the meantime, 94 out of the highest 100 cryptocurrencies by market capitalization are flashing purple, in response to CoinMarketCap.

The chance-off tone within the cryptocurrency markets is probably going related to the US Securities Change Fee’s (SEC) rejection of a number of proposals for bitcoin exchange-traded funds (ETFs) on Wednesday.

Additional, it was reported earlier at present that China, one of many greatest sources of demand for cryptocurrencies, is planning to dam entry to greater than 100 abroad crypto exchanges.

Nonetheless, BTC has averted a break beneath the rising trendline and is holding effectively above the assist at $6,230 (Aug. 20 low), as seen within the chart beneath, forcing us to contemplate the potential of a rally.

Four-hour chart

The chart additionally exhibits the 50-candle and 100-candle transferring averages (MAs) are starting to rise in favor of the bulls. So, it appears protected to say that the trail of least resistance is to the upside. Solely a UTC shut beneath $6,230 would weaken the bull case.

That stated, the chance of a break beneath $6,230 is low, because the SEC ruling has not caught the market off guard – that’s, the investor group was probably anticipating the fee to ship dangerous information after its earlier ETF rejection in July.

Following that, the bitcoin worth crashed greater than 30 % within the three weeks to Aug. 14, indicating the market had priced within the detrimental information prematurely.

View

  • BTC might stay effectively bid above $6,230 (Aug. 20 low) within the subsequent 24 hours. That may pave the best way for a sustained rise in the direction of $7,000 within the short-term.
  • If the assist at $6,230 is breached, then the bears could push the cryptocurrency right down to the latest low of $5,859.
  • A UTC shut beneath $5,755 (June low) would sign a resumption of the long-run bear market and would open the doorways to $5,000 (psychological assist).

Disclosure: The creator holds no cryptocurrency property on the time of writing.

Bitcoin picture through Shutterstock; Charts by Buying and selling View

Be part of 10,000+ merchants who come to us to be their eyes on the charts, offering all that is sizzling and never within the crypto markets.

The chief in blockchain information, CoinDesk is a media outlet that strives for the best journalistic requirements and abides by a strict set of editorial insurance policies. CoinDesk is an unbiased working subsidiary of Digital Foreign money Group, which invests in cryptocurrencies and blockchain startups.

About Tom Greenly

Check Also

Venezuela: Petro Can Be Converted Into Any Cryptocurrency If Bought This Year

Information The Venezuelan authorities has introduced that its nationwide digital foreign money, the petro, will …

Teeka Tiwari on Bitcoin vs. the Stock Market

The inventory market was roughed up final month. The broad market was down practically 10% …