Bitcoin finds a floor around $6,500

BTCUSD, H1

The fall last night in Bitcoin (BTCUSD) came after a keenly awaited announcement from the US Securities and Exchange Commission (SEC) over VanEck was postponed from August 10 to September 30. VanEck SolidX Bitcoin Trust, to give it its full title, is proposed as the first Bitcoin specific exchange-traded-fund (ETF). A regulated Bitcoin-specific ETF is seen as a key milestone in the development and establishment of the leading cryptocurrency. Last year’s launch of regulated Futures markets on CME and CBOE helped BTCUSD move to all-time highs over $19,000. Many Bitcoin holders are hoping that VanEck will be part of a new dawn for the whole cryptocurrency market.

The pressure remains to the downside in the higher time frames for  BTCUSD, with a break of the 20 day moving average on Tuesday as rumours around the SEC decision circulated and a gap through the key Fibonacci level today following the announcement.  Below today’s $6,500 zone, next Support appears at $6,160 and the July low, the psychological $6,000 and then the 2018 low at $5,800  To the upside the 200 period moving average sits at $7,640,  the July cluster high at $8,250, the May peak at $9,700  and finally the psychological $10,000.

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Stuart Cowell

Head Market Analyst

HotForex

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