Bitcoin: Weekly Analysis of the Market
August 13, 2018 7:27 am,
Bitcoin: This week has been a comparatively a rough and a tough week for the cryptocurrencies. The total market has dropped to $228 billion. This accounts to around 24% down from July high of $300 billion. The digital coin No. 1 is range bound after strong movements during the previous week, waiting for fresh triggers to set it moving.
Bitcoin price is slowly rebounding from $6,200 against the US Dollar. BTC/USD must clear the $6,680 resistance and the 100 hourly SMA to gain bullish momentum.
The BTC/USD pair did move higher and broke the $6,350 and $6,550 resistance levels. The move was positive since the price broke the 38.2% Fib retracement level of the last drop from the $7,160 swing high to $6,100 swing low. However, the upside move faced a strong resistance near the $6,630 level.
The recent downtrend has been accounted to SEC (Securities and Exchange Commission) delay in making a decision on ruling an awaited ETF. The prominent cryptocurrency was supposed to stage a remedial rally in the last 24 hours, having safeguarded the key 50-day moving average (MA) support earlier this week.
However, the sellers made a strong response above $7,100 after the SEC exercised its right to postpone the decision on whether to approve a rule that would allow Chicago Board Options Exchange (CBOE) to offer shares of an ETF issued by VanExk SolidX Bitcoin Trust.
As an outcome, BTC closed yesterday on a negative at $6,719 and fell to $6,360 today which is the lowest level since July 16. BTC is trading at $6,500 on Bitfinex. This drop may prove to be in favour of ETF. The cryptocurrency might amalgamate around $6,500 in the next 24 hours, as recommended by the 4-hour chart, before restarting the sell-off. Merely a high-volume break above the falling channel seen in the 4-hour chart would shift risk in support of a re-test of $7,200 (200-candle MA).