Bitcoin – SEC Deliberates as it Stops Taking Further Comments

Bob Mason
Published: Nov 7, 2018, 03:56 GMT+00:00

Bitcoin finds support early on as the broader market takes a slide, with hopes of the SEC approving a Bitcoin ETF supporting early on.

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By recent standards, Tuesday wasn’t a bad day for the Bitcoin bulls, with Bitcoin gaining 0.81% to reverse Monday’s 0.33% loss and end the day at $6,522.2.

Of significance was Bitcoin’s hold onto $6,500 levels by the day’s end, a first since 26th October’s $6,532.2.

A range bound start to the day saw Bitcoin lag well behind the day’s front runners, with Cardano’s ADA, Ripple’s XRP and Stellar’s Lumen well ahead of the pack before Bitcoin Cash’s late morning spring to life.

Bitcoin’s troubles at $6,500 levels was evident through the morning, unable to break out from the day’s first major resistance level at $6,502.1, a morning high $6,519 being coughed up with ease to pullback to sub-$6,500 levels.

Support from the broader market ultimately kicked in, with Bitcoin breaking back through the first major resistance level at $6,502.1 to an intraday high $6,527.7, holding above the first major resistance level by the day’s end a bullish signal for the day ahead.

Driving Bitcoin late in the day was an announcement by the SEC that all comments had been received and that no further comments would be taken. While the statement came up short of giving any indication of whether any of the 9 pending Bitcoin ETF applications will be approved, the Bitcoin bulls took this as a positive at the turn of the day.

The upward momentum comes at a time when volumes have been picking up and volatility has begun to creep back into the broader market, with the likes of Bitcoin Cash and Ripple’s XRP seeing sizeable gains in recent weeks, albeit for very different reasons.

It remains to be seen whether the market is on for another late in the year rally that saw the majors hit record highs late last year, Bitcoin coming up just shy of $20,000, but a single Bitcoin ETF approval would certainly pave the way for more gains across the crypto majors, particularly with the markets not having to worry too much about a material shift in the regulatory landscape until next summer.

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At the time of writing, Bitcoin was up 0.99% to $6,587, with a bullish start to the day coming from Tuesday’s late rally, Bitcoin jumping to an early morning high $6,615 before easing back to $6,500 levels. Bitcoin’s first visit to $6,600 levels since 24th October saw Bitcoin break through the first major resistance level at $6,550.8 and second major resistance level at $6,579.4 before easing back.

For the day ahead, a move back through to $6,600 levels could see Bitcoin play catch up with the early part of the week cryptomarket front runners that have struggled in the early hours, with a hold above the first major resistance level at $6,550.8 supporting another rally later in the day.

Failure to hold onto $6,550 levels could see Bitcoin slide back through a start of a day morning low $6,511 to bring sub-$6,500 levels and the day’s first major support level at $6,470.5 into play before any recovery, more material losses unlikely barring particularly negative news hitting the wires, an SEC decision anticipated any day.

BTC/USD 07/11/18 Daily Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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