- Bitcoin ETF rejected by the US SEC citing fraudulent activities and market manipulation practices.
- Bitcoin recovery grinds to a halt above $8,700 giving way to declines towards $8,500.
Bitcoin price reacted in almost the exact way we discussed yesterday. The largest cryptocurrency broke several barriers at $8,400, $8,600 and $8,700 before grinding to a halt around $8,712. The recovery is mostly connected to the positive technical picture displayed after the rejection from $8,300 found balance above $8,100.
The rejection of a Bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) caught the buyers off guard which led to a retracement below $8,600. XBT/USD is trading at $8,585 amid a building bullish momentum. The bulls refuse to give as their target shifts from $9,000 to $9,200.
The two-hour price chart clearly shows Bitcoin at the apex of a short-term falling triangle pattern. Reaction to this pattern is likely to boot Bitcoin above $8,800 resistance. Trading above $8,800 will give the buyers a boost towards the mentioned target at $9,200.
XBT/USD 2-hour chart
Meanwhile, the 50 Moving Average (MA) incoming double-cross above the longer-term 100 MA suggests that Bitcoin settle at a higher consolidation level. In addition to that, the indicators signify that the bulls’ dominance will last longer.
The Relative Strength Index (RSI) in the same range is leveling at 70 as a signal of sideways trading precedence in the near-term. The trend of the RSI coupled with the thinning volume confirms the intended sideways trading as the triangle pattern breakout approaches. In the long-run, Bitcoin long traders should remain bullish on the $9,200 target, Ignoring the short-term fluctuations could be key to positive trades.
XBT/USD Technical Indicators
Spot rate: $8,579
Trend: Short-term bearish, long-term bullish
Support $8,400, $8,200 and $7,800.
Resistance: $8,600, $8,800 and $9,200.
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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