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Bitcoin has suffered another devastating blow today following an announcement from the United States Securities and Exchange Commission (SEC) earlier this morning that they will be postponing a ruling on the VanEck’s Bitcoin ETF proposal until September 30th.
This news sent waves of FUD and panic throughout the BTC market as investors hastily withdrew from the asset, causing the #1 cryptocurrency by market capital to slide a further -10% towards the $6,400 mark. In the last two weeks, Bitcoin has fallen by as much as $2,000, diminishing earlier hopes that it might retest $10,000 by Q4.
The Story So Far
In the 3hr BTC/USD chart, we can see that the asset bearishly double topped at the 0.5 fib level at $7,150 before plummeting almost vertically off the back of the SEC’s announcement.
The critical $6,800 support at the 0.382 fib level failed to slow BTC’s rapid decline, forcing it to find a foothold in the 0.236 fib level below at $6,400.
Going forward, the $6,800 level will present a strong resistance for BTC to overcome if it is to return to its earlier value above $8,000. Looking back at Bitcoin’s history this resisting price point was able to hold Bitcoin down throughout June and halfway into July before bulls were finally able to break free.
The Story Now
Looking at the price action more closely we can see long wicks beneath the most recent candles indicating that the bulls are starting to fight back against the mounting selling pressure. We can also see progressively shortening candles as the market remains unsure of where BTC is heading over the short-term.
We do have some promising signals from chart indicators over 1hr candles that buying momentum is starting to build again; whether it will sustain for long enough to kickstart a trend reversal remains to be seen.
- RSI has climbed back into the index channel after falling into the oversold region
- MACD is showing a positive convergence towards the slower moving average but is still far below the signal line.
- Chaikin Money Flow indicator is edging towards the zero line above.
Bitcoin (BTC) Price Targets
All price targets are set from the 0.236 fib level / $6,437.20 mark.
Price Target 1: The first resistance to overcome will be at the $6,530 mark, which could suppress the price action between here and the lower Fibonacci support. (1.44% ROI).
Price Target 2: From there, the next main resisting level in between these two Fibonacci levels will be at the $6,670 mark. As the bulls edge closer to the critical $6,800 resistance, it is likely that we’ll see many short-term traders take profits early in anticipation of a failed retest. (3.63% ROI overall).