Bitcoin Looks for $10,000 after a Wednesday Tumble

Bitcoin took a dive on Wednesday afternoon, in response to the SEC issuing a statement calling for all crypto exchanges to register with the SEC, with cryptocurrencies being classified as securities.

Upon the news hitting the wires, Bitcoin fell 11.6% to an intraday low 9,450, with Bitcoin hitting sub-$10,000 levels for the first time since the end of February.

The only good news for Bitcoin investors was the fact that Bitcoin’s 3^rd support level of $9,188 was not tested on the day, but that was about it, with Bitcoin closing out the day with a 7.8% fall to $9,886.35.

The decline from Monday’s $11,688 high had started well before the SEC issued its statement on Wednesday, with a bearish trend having formed late in the day on Monday. Bitcoin’s failure to break out beyond its ranges through the weekend and early Monday weighed through to Wednesday’s tumble.

Support levels are certainly of little use when regulatory news hits the wires and when considering the content of the SEC statement, one can only imagine how Bitcoin will respond to more significant demands from the SEC.

Get Into Cryptocurrency Trading Today

If investors were looking for a turnaround this morning, things have not got much better, with Bitcoin was down 1.31% to $9,782.99 at the time of writing.

An early move through to $10,000 levels, with an intraday high $10,037 fell short of Bitcoin’s first major resistance level of $10,715 and Bitcoin has struggled to make a move back through to $10,000 levels since.

Current levels may be considered attractive to investors looking to recover losses from the week, which hit 19.15% from Monday’s high to Wednesday’s low, though the possibility of more news from the SEC will certainly test investor resolve through the day.

With so much uncertainty now plaguing the markets, Bitcoin will need to break out beyond its 23.6% FIB Retracement Level of $9,978.17 and move through today’s intraday high $10,037 to have a run at its first major resistance level of $10,715.

A failure to break through $9,978.17 will likely lead to Bitcoin testing its first major support level of $9,254.64 later in the day.

As things stand a move back through to $10,000 levels may well be all that investors can hope for in what is likely to be another choppy day for Bitcoin.

Looking across at the Cboe Bitcoin futures, with the March contract down $65 to $9,770, investors are certainly not going to get any help from there…

Elsewhere in the cryptomarket, Ripple’s XRP has managed to recover losses from earlier in the day to move into positive territory at the time of writing, up 0.52% to $0.8563, while NEM’s XEM steals the show this morning, up 1.75% to $0.2996. NEM’s XEM gains will be of little consolation for investors that got in over the weekend, with NEM’s XEM having tumbled 27% from Monday’s high to yesterday’s low.

With a choppy day ahead, we can expect investors to be quick to lock in any profits in fear of further regulatory notices from the SEC and elsewhere.

Buy & Sell Cryptocurrency Instantly