The market wasn't expecting the Security Exchange Commission (SEC) to approve any crypto ETFs any time soon - maybe no until the second half of 2019. The SEC continues to cite price manipulation and lack of surveillance as the central issues, according to Bloomberg.
- The interesting thing is how the SEC is framing the rejection.
- According to Business insider, "The SEC ruling stressed that the ETF rejections "do not rest on an evaluation of whether bitcoin, or blockchain technology more generally, has utility or value as an innovation or an investment." This may be providing price support." (Business Insider).
- Indeed, the news did not cause much price displacement.
- In fact, we see some upwards drift because the SEC makes it seem like it believes in the technology and utility of bitcoin, and it is just a matter of time before the right pieces fall into place for it to become a more mainstream financial asset.
- I think price is anchoring above $6200 after already anchoring above $6000 on 8/13-8/14.
- Price has held above the $6200-$6250 area since 8/15.
- I think if we see bitcoin break above $6615, we should expect it to run towards $7000.
- However, if price holds under $6600, and the daily RSI holds under 60, we might be looking at a bearish scenario.
- Then a break below $6200 would open up the $6000 handle as well as a bearish continuation scenario towards $5600 and $5000.