Yahoo Finance Bitcoin – SEC Says No to ETFs
Bitcoin slid by 1.98% on Wednesday, partially reversing Tuesday’s 3.58% relief rally, to end the day at $6,352.3.
A particularly bullish start to the day saw Bitcoin break through the first major resistance level at $6,589 and second major resistance level at $6,698.2 to an intraday high $6,899. The early morning moves also seeing Bitcoin break through the 23.6% FIB Retracement Level of $6,757 for the first time since the first week of August.
The bullish start failed to hold, with Bitcoin pulling back to $6,600 levels through the morning, before an early afternoon sell-off that saw Bitcoin slide through the first major support level at $6,307.8 to an intraday low $6,250.3 before recovering to $6,300 levels by the day’s end.
Sub-$6,300 support kicked in for a 3rd consecutive day, with Bitcoin having failed to recover to $6,300 levels on only one occasion in the last 5 that Bitcoin has dipped to $6,200 levels on the day.
While the early moves were attributed to a number of factors, including short covering, the cryptomarket focus will have been on the anticipated decision by the SEC on whether to approve a number of Bitcoin ETFs that would bring in new capital in to support Bitcoin and the broader market.
Following a number of delays and also a decline earlier in the month, the SEC decision came in earlier than had been anticipated, with the SEC declining a total of 9 Bitcoin ETFs, from 3 applications that included 2 ProShares ETFs structured to track Bitcoin futures contracts.
The SEC cited a failure to address Exchange Act Section 6(b)(5), in particular the requirement that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices as the reason for rejection, as it had done back in July when it also rejected the Winklevoss ETF.
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At the time of writing, Bitcoin was up 0.81% to $6,415.1, with Bitcoin moving from a start of a day morning low $6,350 to a morning high $6,430.2, before easing back, the early moves leaving the day’s major support and resistance levels untested.
For the day ahead, a move through to $6,500 would support a run at $6,600 levels to bring $6,700 levels and the day’s first major resistance level at $6,750.77 and the 23.6% FIB Retracement Level of $6,757 into play, though following the latest SEC rejection, Bitcoin will likely face plenty of resistance on any moves through $6,500 and beyond, with $6,500 continue to be a key resistance level for the Bitcoin bulls.
Failure to break back through to $6,500 levels could see Bitcoin hit reverse later in the day, with a pullback through the morning low $6,350 likely to test sub-$6,300 support levels for a 4th consecutive day, some price action expected following the SEC’s latest rejection.
The early gains have come in spite of the SEC rejection of the 9 Bitcoin ETFs, with the reversal through Wednesday having come in anticipation of the decision that was due later today, which would have suggested that Bitcoin and the broader market should face some market backlash in response to the decision.
This article was originally posted on FX Empire
