Bitcoin – Bulls Take Control ahead of Tomorrow’s SEC DecisionAn early rally saw Bitcoin break through key resistance levels, though things could get choppy as investors look ahead to tomorrow’s SEC decision.
Bitcoin gained 3.58% on Tuesday, reversing Monday’s 3.63% slide, to end the day at $6,479.8.
Monday’s late in the day reversal continued into Tuesday, with Bitcoin falling to a start of a day intraday low $6,245 before buying appetite kicked in.
Since the weekend, Bitcoin has enjoyed strong support at sub-$6,300 levels and Tuesday was no exception, with Bitcoin rebounding through the morning to an intraday high $6,526.2. As had been the case in recent days, Bitcoin continued to struggle to hold on to $6,500 levels, pulling back to an afternoon $6,400 low.
A late in the day second run at $6,500 levels saw Bitcoin strike an afternoon high $6,500 before easing back, the strong support at sub-$6,300 levels and strong resistance at $6,500 having left Bitcoin in a relatively tight range of late.
As expected, with the SEC due to make a decision on 2- Bitcoin ETFs tomorrow, ahead of the more decisions in September, volatility persists and approval tomorrow may well set the stage for further approvals next month. The significance of the approvals being the introduction of new money into the market.
It remains to be seen whether the SEC is in a position to make a decision tomorrow, particularly when considering the fact that the G20 delayed its rollout of unified rules and regulations for the cryptomarket. The SEC may ultimately feel that for the G20 rules and regs would make more sense, rather than approving the launch of Bitcoin ETFs that may then have to restructure, depending upon the G20s final blueprint.
With the news wires on the quieter side at the start of the week, there’s certainly some work going on in the background that will need to be considered in the weeks ahead, the news wires rarely staying quiet for long.
At the time of writing, Bitcoin was up 3.9% to $6,731.9, with momentum from Tuesday’s recovery continuing into the early hours, Bitcoin surging from a morning low $6,438 to an early morning high $6,899.
Bitcoin’s early moves through the first major resistance level at $6,589 and second major resistance level at $6,698.2, saw Bitcoin hit its highest level since the end of July and, more importantly, test selling pressure at the 23.6% FIB Retracement Level of $6,757 for the first time since the first week of August.
For the day ahead, a move back through to $6,800 levels would support another run at the $6,900 levels to bring the day’s third major resistance level at $6,979.4 and $7,000 levels into play, though Bitcoin will need to break back and hold above the 23.6% FIB Retracement Level of $6,757 to support a second bounce later in the day.
Failure to move through the 23.6% FIB Retracement Level could see Bitcoin pullback to sub-$6,500 levels later in the day, while we would expect Bitcoin to steer clear of the day’s first major support level at $6,307.8, Bitcoin having managed to break out from the all-important $6,500 level in the early hours.