Bitcoin price on the brink of nosediving to $30,000 as the SEC reviews two BTC ETF products

By John Isige
May 28, 2021 Updated May 28, 2021
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Bitcoin’s lock-step trading is becoming more or less mundane. The inability to lift above $40,000 appears to be exhausting buyers. On the other hand, most attention is directed toward defending support at $37,000.

Meanwhile, the flagship cryptocurrency trades slightly above $38,000. The primary goal is to support the 50 Simple Moving Average (SMA) on the four-hour chart. However, there is a high chance that this immediate anchor will not hold in the short term, paving the way for losses beneath $38,000.

The US SEC reviewing Bitcoin ETF products filings by Fidelity and SkyBridge

A couple of United States-based companies, Fidelity and SkyBridge, have filed applications seeking approval for Bitcoin exchange-traded funds (ETFs). A filing on May 25 confirms the application from Fidelity Investment which intends to debut an investment product referred to as Wise Origin Bitcoin Trust.

Fidelity began the process in March and aimed to have the product trade on Cboe’s BZX exchange. Similarly, SkyBridge Capital completed a separate filing on May 21 with a product dubbed First Trust SkyBridge Bitcoin ETF Trust likely to trade on the New York Stock Exchange.

Bitcoin on the verge of another downswing

Bitcoin’s short-term technical outlook shows signs of the bearish pressure taking a toll on the bulls in the coming sessions. The picture comes after the rejection of $40,000. Besides, the Relative Strength Index (RSI) emphasizes the bearish building momentum as it retraces toward the midline.

BTC/USD four-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

The downtrend will become more apparent if the Moving Average Convergence Divergence (MACD) returns to the negative region. Overhead pressure would be accentuated by the MACD line (blue) crossing under the signal line. Support is anticipated between $37,000 and $36,000, but if broken, BTC could tumble towards $30,000

Bitcoin intraday levels

Spot rate: $38,178

Trend: Bearish

Volatility: Expanding

Support $37,000 and $35,000

Resistance: $40,000

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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