Having run its course, the recent recovery rally in crypto market has come to end and major crypto currencies have now erased all most all gains made from early week while a few have even fallen back to monthly lows. Lack of fundamental support remains one of the major factors that has affected and continues to affect price action of major crypto coins in last few months. While news driven momentum helps Altcoins from time to time any such rally has so far turned out to be dead cat bounce. While crypto market saw all major Altcoins and Bitcoin lose nearly 10% since yesterday with market losing over $100 billion in value, news of Bitwise reaching out to SEC for approval of Bitcoin ETF to be traded in NYSE Arca provided some cushioning effect.
News of Bitwise’s ETF Approval Request To SEC Cushions Downside Price Action
According to latest tweet in Bitwise’s official twitter account, the cryptocurrency Asset Management firm has filed an initial registration statement to US Securities and Exchange Commission (SEC) for ETF to be traded in NYSE Arca and they are hopeful that the request will be approved as they believe that unlike other ETF’s which have come in front of SEC, they are special owing to regulated third party custodians who will hold their physical Bitcoin. It remains to be seen if this change will have any impact on SEC’s standing over approval of Bitcoin ETF’s and while the approval is highly unlikely it has helped major Crypto’s find some support on their downside price action.
Since the tweet hit market yesterday, Bitcoin has traded in relatively range bound fashion. A look at hourly chart shows that Bitcoin has remained stable near $3600 handle and traded in relatively neutral pace across Asian and European market hours. Unless the key support of $3500 mark is breached Bitcoin will continue to move in range bound fashion but a break below said level will leave the BTC/USD pair vulnerable to sharp fall till $2700 to $2400 price range. Meanwhile investor’s caution ahead of next week’s Ethereum updates also limits trading volume in crypto market significantly. Ethereum has breached another psychological support at $130 handle and is on slow downside price action. Limited trading volume and continued profit booking could lead the pair to test support level of $100 by weekend if the ETH/USD pair continues losing ground at current pace. A lack of news to push the altcoins higher amid prevalent market scenario will likely result in further decline of bitcoin and other major crypto currencies over the weekend.
This article was originally posted on FX Empire
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