Bitcoin – The Bulls Take Control as the SEC Hits Pause

Bitcoin gained 2.56% on Friday, following on from Thursday’s 2.68% rise, to end the day at $6,693.3, with the 2 consecutive days of gains seeing Bitcoin up 3.23% for the current week, Monday through Friday.

Investor reaction to the decision by the SEC to review the latest Bitcoin ETF rejections immediately after the earlier than anticipated decision to reject all 9 Bitcoin ETF applications provided support to Bitcoin and the broader market through the day.

A bullish start to the day say Bitcoin break back through to $6,500 levels, with a morning high $6,583 before a broad cryptomarket reversal in the early afternoon pulled Bitcoin back to an intraday low $6,451, the moves through the first half of the day leaving the major support and resistance levels untested.

Leading the broader market, Bitcoin rallied through the afternoon to a late in the day intraday high $6,728.6, Bitcoin breaking through the first major resistance level at $6,617.13 and second major resistance level at $6,700.17 before pulling back to $6,600 levels by the day’s end.

In spite of the solid gains and what could be another positive week for Bitcoin, the extended bearish trend remained intact, with Bitcoin falling short of the 23.6% FIB Retracement Level of $6,757 and $7,000 levels needed to support a near-term bullish trend.

On the news wires, the upward momentum through the day and support for the broader market ultimately came from the SEC announcement that it would review the Bitcoin ETF rejections, the alternative likely to have been another market sell-off, as had been the case with the previous rejections earlier in the year.

While the review will have held back an immediate market reaction, the uncertainty will be an issue that the Bitcoin bulls will have to contend with in the days ahead, the SEC having held back from giving a timeframe for the review.

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At the time of writing, Bitcoin was up 1.23% to $6,776, with Bitcoin moving from a start of a day $6,693.2 low to a morning high $6,799.7 before easing back, the early moves seeing Bitcoin break through the 23.6% FIB Retracement Level of $6,757 to test resistance at the first major resistance level at $6,798.27.

For the day ahead, a move back through the morning high would support a break through to $6,800 levels for the first time since 7^th August, which could lead to a break out to bring the second major support level at $6,902.23 into play before any pullback, Bitcoin needing to hold above the 23.6% FIB Retracement Level of $6,757 through the morning to support a rally later in the day.

Failure to hold above $6,757 could see Bitcoin pullback through the morning low $6,693.2, with a fall to $6,620 levels likely to lead to a reversal of the week’s gains and bring the day’s first major support level at $6,520.67 into play.

While the Bitcoin bulls are in control through the second half of the week, holding on to $6,700 levels will be key to avoiding a reversal later in the day.

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This article was originally posted on FX Empire

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