Bitcoin (BTC) Bulls Defend Key Support
Bitcoin traded up a bit Thursday, having defended Key support at 6,230 despite bad news.
Currently, Bitcoin is trading at 6,530.86, -8.09, or -0.1237%, as of 8:001a BST, the market is open
Note: 94 out of the Top 100 cryptocurrencies by market capitalization are flashing Red, according to CoinMarketCap.
The risk-off tone in the cryptocurrency markets is likely associated with the US Securities Exchange Commission’s (SEC) rejection of 9 separate proposals for Bitcoin ETFs Wednesday.
China is planning to block access to more than 100 overseas crypto exchanges.
Nevertheless, Bitcoin has avoided a break below the rising trendline and is holding well above the support at 6,230, as seen in the 4hrs candle below.
The chart also shows the 50 and 100-Day MAs are beginning to rise in favor of the Bulls, the path of least resistance is to the Northside. Only a UTC close below 6,230 weakens the Bull case.
A clear break below 6,230 not seen yet, as the SEC ruling has not caught the market off guard expecting the commission to deliver bad news after its previous ETF rejection in July and priced in the rejection.
Following that, the Bitcoin price crashed more than 30% in the 3 weeks to 14 August indicating the market was pricing in Wednesday’s negative news in advance.
The Outlook into this Weekend
- Bitcoin could see bids above 6,230 in the next 24 hrs. It that happens, it opens the door for a rise to 7,000 near term.
- If the support at 6,230 is broken, the Bears may push Bitcoin down to the recent low at 5,859.
- A UTC close below 5,755 would trigger a resumption of the long term Bear market and would open the door to the Psych support at 5,000.