BTC Bulls Eye a Return to $32,000 on SEC v Ripple Rulings

Key Insights:

• On Thursday, BTC gained 3.44% to end the day at $31,536.
• Court rulings in the SEC v Ripple case delivered a broad-based crypto rally.
• The technical indicators remained bullish, signaling a run at $32,000.

On Thursday, bitcoin (BTC) rallied by 3.44%. Reversing a 0.74% loss from Wednesday, BTC ended the day at $31,536. Significantly, BTC held onto the $31,000 handle for the first time since July 3.

Bitcoin (BTC) Price Action

This morning, BTC was down 0.17% to $31,481. A mixed start to the day saw BTC rise to an early high of $31,599 before falling to a low of $31,384.

Daily Chart

The Daily Chart showed BTC/USD hover at the upper level of the $30,750 – $31,250 resistance band, with the Court ruling in the SEC v Ripple case supporting the bullish Thursday session.

BTC/USD remained above the 50-day ($29,235) and 200-day ($26,532) EMAs, signaling bullish momentum over the near and long term.

Notably, the 50-day EMA continued to pull away from the 200-day EMA and reflected bullish momentum.

Looking at the 14-Daily RSI, the 65.55 reading signaled a bullish outlook and aligned with the 50-day and 200-day EMAs, supporting a run at the Thursday high of $31,876 and $32,000.

4-Hourly Chart

Looking at the 4-Hourly Chart, the BTC/USD faces strong resistance at the $31,500 psychological level. BTC/USD sits above the $30,750 – $31,250 resistance band and the 50-day ($30,646) and 200-day ($29,619) EMAs, sending bullish near and longer-term signals.

Significantly, the 50-day EMA pulled away from the 200-day EMA, signaling a run at $32,000. However, a fall through the $31,250 – $30,750 resistance band would bring the 50-day EMA ($30,646) into play. A fall through the 50-day EMA would send a bearish signal.

The 14-4H RSI reading of 66.31 indicates a bullish stance and aligns with the 50-day EMA, with buying pressure outweighing selling pressure. Significantly, the RSI signals near-term bullish momentum and a return to $32,000.

SEC v Ripple Court Rulings Deliver a BTC Breakout Session

US economic indicators and investor sentiment toward Fed monetary policy plans took a back seat on Thursday.

Judge Analisa Torres, the presiding judge in the SEC v Ripple case, caught the markets by surprise, delivering rulings on the Parties’ Motions for Summary Judgment.

Significantly, Judge Torres ruled that XRP did not satisfy the third prong of the Howey Test vis-à-vis Programmatic Sales of XRP.

Judge Torres noted that Ripple sold XRP on digital asset exchanges programmatically or through trading algos (the “Programmatic Sales”). Judge Torres added that the sales on digital asset exchanges were blind bid/ask transactions. Ripple did not know who was buying the XRP, and the purchasers did not know who was selling it.

The ruling went on to say,

“Indeed, Ripple’s Programmatic Sales were blind/bid ask transactions, and Programmatic Buyers could not have known if their payments of money went to Ripple or any other seller of XRP. Since 2017, Ripple’s Programmatic Sales represented less than 1% of the global XRP trading volume. Therefore, the vast majority of individuals who purchased XRP from digital asset exchanges did not invest their money in Ripple at all.”

The Court rulings gave investors hope of a shift in the SEC’s bid to regulate the US digital asset space and force US lawmakers to deliver appropriate legislation and oversight.

The Day Ahead

It is a busy Friday session, with the SEC v Ripple Court ruling and related commentary likely to resonate.

While the SEC has yet to state whether it will appeal the ruling, investors expect the SEC to contest the Court ruling. An appeal could drag the case on for another two to three years.

Such an outcome would be bearish for the digital asset space grappling with the lack of a US crypto regulatory framework. However, the latest Court ruling could incentivize US lawmakers to push through legislation and deliver an appropriate framework to protect consumers while supporting innovation.

Beyond the SEC v Ripple case investors should track ETF chatter, with Binance and Coinbase-related news likely to also be focal points.