Bitcoin – Bulls in Limbo as the SEC Reviews its latest Rejections

Bitcoin gained 2.68% on Thursday, reversing Wednesday’s 1.98% fall, to end the day at $6,534.1.

A start of a day intraday low $6,350 steered well clear of the day’s first major support level at $6,102.07, with $6,300 continuing to provide Bitcoin with the necessary support through the week to avoid a more material pullback to sub-$6,200 levels last struck on 15^th August.

In spite of the SEC’s decision overnight on Wednesday to reject 9 Bitcoin ETFs, Bitcoin and the broader market managed to avert a sell-off through the day, with Bitcoin moving through to a late in the day intraday high $6,566.6 before easing back, the day’s high falling short of the first major resistance level at $6,750.77 and the 23.6% FIB Retracement Level of $6,757.

Thursday’s gains pulled Bitcoin into positive territory for the week, Bitcoin bucking the trend across the broader market, while the extended bearish trend remains firmly intact, with Bitcoin last breaking through the 23.6% FIB Retracement Level of $6,757 to $7,000 levels back on 7^th August.

On the news wires, Bitcoin and the broader market ultimately found support through the day from an announcement by the SEC that it would be reviewing the decision to reject the 9 Bitcoin ETF applications, though the SEC held back from providing a timeline that will leave Bitcoin and the broader market in limbo for that little bit longer.

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At the time of writing, Bitcoin was down 0.57% to $6,489.8, with Bitcoin easing back from a start of a day morning high $6,539.9 to a morning low $6,480 before steadying, the moves through the early part of the morning leaving the day’s first major support level at $6,400.53 and first major resistance level at $6,617.13 untested.

Following Bitcoin’s first hold at $6,500 levels since last Friday, in spite of breaking through to $6,500 levels and beyond on each day, holding on to $6,500 levels through the early hours of this morning would have been key to support a second half of a day rally.

For the day ahead, a move back through to $6,500 levels and hold through the late morning would support a run at $6,600 levels to bring the first major resistance level at $6,617.13 into play, while we will expect Bitcoin to fall short of $6,700 levels and the 23.6% FIB Retracement Level of $6,757 barring positive news from the SEC.

Failure to break back through to $6,500 levels could see Bitcoin take a bigger hit later in the day, with the day’s first major support level at $6,400.53 and $6,300 levels in play should sentiment not improve across the broader market through the day.

While Bitcoin found support from the SEC’s announcement that it would review its rejection of the 9 ETFs on Thursday, sentiment may shift through the day, with uncertainty over whether the SEC will change its stance likely to weigh.