Friday Inferno marketwatch

crypto.inferno (67)in #bitcoin • 6 years ago

After a lacklustre couple of days at the beginning of the week, BTC took yet another dive down towards support, touching $6,100 – a lower low. At that point, traders had had enough, so they took the #1 digital currency to the Emergency Room and applied the defibrillators.

The one-hour chart shows what happened next. A $230 crash, followed by an immediate $500 rise. Heartbeat reset and trading rhythms back to normal, traders nevertheless weren’t taking any chances and applied the paddles once again last night when the SEC released an update unexpectedly early.

It should come as no surprise that the SEC has, once again, delayed their decision on the SolidX-VanEck BTC ETF – the only one the community really cares about because it involves actually buying and selling real bitcoin, rather than futures trading. In fact, the only surprise is that traders were surprised. When the news came out, bitcoin briefly dropped back below $6,400 before traders rapidly reconsidered and started buying hard.

The SEC is ‘seeking further comment’, and ploughing through the 1,400 responses it has had from the public so far – the majority of which have been overwhelmingly positive. A key remaining concern for the SEC is the potential for manipulation in the bitcoin markets. But with ‘Crypto Mom’ SEC Commissioner Hester Peirce vocally advocating for the ETF, the mood is lifting and traders are likely starting to price in a positive decision, rather than the uncertainty that has characterised proceedings after so many denials of other ETFs.

‘The Commission should not default to a demand that the crypto markets be subject to comprehensive government regulation as a precondition to allowing products linked to those markets to be traded in markets that we regulate.’
– Hester Peirce

At the time of writing, the price is sitting at $6,700; 4h RSI is very overbought so we can expect a pullback soon. On the 1-day chart, price is now above the 50 MA. Confidence has returned almost overnight. This is despite the $60 million hack of a Japanese exchange earlier this week, including almost 6,000 BTC.

In other news, fundamental factors could start driving bitcoin adoption once again. The trade war between the US and China intensified this week with new tariffs, and no immediate end in sight. Ten years after the fall of Lehman Brothers, analysts are starting to warn of a new financial crisis on the way, driven by a range of factors including all-time high levels of global debt, which will become unserviceable as interest rates are forced to rise. This time, there are no policy tools left to address the issue.

That’s all for now. Stay tuned for our next market update on Tuesday.