This morning, Bitcoin is back in negative territory. The SEC has initiated an appeals process to keep the U.S. cryptocurrency market in limbo for a little longer.
BTC followed the broader market lower on Wednesday, falling 0.51% to close at $30,190.
Profit-taking and SEC court filings in the SEC v. Ripple case put BTC on the back foot.
However, near-term technical indicators remain bullish and signal a return to $31,500.
Bitcoin (BTC) fell 0.51% on Wednesday. BTC partially reversed Tuesdayâs 1.99% gain and closed the day at $30,190. Notably, Bitcoin held above the $30,000 mark for the second time since July 23.
Bitcoin (BTC) Price Chart
This morning, BTC is down 0.56% to $30,022. A mixed start to the day saw BTC rise to an early morning high $30,243 before falling to a low $30,020.
Daily chart
The daily chart shows that BTC/USD is trading below the $30,750-$31,250 resistance zone. However, BTC is above the 50-day ($29,546) and 200-day ($27,284) EMAs, giving near-term and long-term bullish price signals. Notably, the 50-day EMA is broadening out over the 200-day EMA, signaling further gains.
Looking at the 14-day RSI, a reading of 54.26 reflects bullish sentiment. The RSI signals a breakout above the $30,750 to $31,250 resistance zone with a target of $31,500. However, a break below the 50-day SMA will result in a move below $28,500 and the $27,500 to $26,850 support zone.
4-hour chart
Looking at the 4-hour chart, BTC remains below the $30,750-$31,250 resistance zone. However, BTC is above the 50-day ($29,729) and 200-day ($29,659) EMAs, giving near-term and long-term bullish price signals.
It is worth noting that the 50-day MA broke away from the 200-day MA after Wednesdayâs bullish crossover. Holding above the 50-day MA will support a breakout above the $30,750â$31,250 resistance zone with a target of $31,500. However, if BTC breaks below the EMA, a drop below $28,500 is in the cards and into the $27,500â$26,850 support zone.
The 14-4 hour RSI reading is 53.72, indicating a bullish stance with buying pressure outweighing selling pressure. Notably, the RSI is in line with the EMA, signaling a return to $31,500.
Spot BTC ETF discussions and Bank of America downgrade provide support for prices
BTC and the broader market succumbed to profit-taking at the lower levels of the $30,750â$31,250 resistance zone.
Uncertainty surrounding the BTC ETF spot application and the SEC court filing in the SEC v. Ripple case has kept BTC and the broader market in negative territory. While the SEC v. Ripple case will not directly affect BTC, the suspension of all litigation during the appeal will put the U.S. cryptocurrency market in limbo for a longer period of time.
On Wednesday, the SEC filed a letter outlining the basis for its interlocutory motion for appeal regarding âprogrammaticâ offers and sales to XRP buyers through trading platforms and other Ripple offerings. Notably, the SEC asked the court not to enforce the programmatic sales judgment pending an appeal.
The Day Ahead
Discussions related to SEC v. Ripple, ETF updates, and news related to Binance and Coinbase (coins) will drive the situation forward.
However, discussion among U.S. lawmakers and activity at the SEC also need to be considered. The reaction of U.S. lawmakers to the SEC court filing will be of interest, although favorable comments from both parties will be needed to support a sustainable breakout.
During the US session, investors should focus on the US CPI report. Rising inflationary pressures will reignite bets on a September rate hike by the Federal Reserve, which could exacerbate recession fears.
