BTC/USD rejects the 6,900 area as SEC rejects Bitcoin ETF proposals
InvestingOnline.com
23/08/2018, 04:31After trading as high as 6,890 on Wednesday, Bitcoin was launched hard to trade negatively on the day at 6,250 following the SEC decision to reject 9 bitcoin ETF proposals.
The SEC, Security Exchange Commission, announced the rejections to bitcoin exchange-traded funds, better known as ETFs, proposals from Direction, GraniteShares, and ProShares. The decision was taken as the exchange not met its burden under the exchange act. The SEC also mentioned the difficult to prevent fraudulent practices.
However, the SEC stressed the market to do not understand that “its disapproval does not rest on an evaluation of whether bitcoin or blockchain technology more generally, has utility or value as an innovation or an investment,” according to the releases.
All three decisions cited the same text: “…the Commission is disapproving this proposed rule change because, as discussed below, the Exchange has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6(b)(5), in particular the requirement that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices.”
Back to the chart, Bitcoin has been trading in a range between 6,000 and 6,800 since August 8. On Wednesday, BTC/USD did a failing break above the range, and it broke the 6,840 level and tested the 6,925. The rejection at the mentioned level was caused by the SEC rejection to ETFs proposals.
Bitcoin daily chart August 23
Technical conditions for the BTC/USD remains bearish with the MACD below its midlines while the RSI showing some upside potential.
When it comes to prices, bulls should take care of the 6,900 area to start believing in a robust recovery. Above that, 7,240 and 7,795 are the selling areas to watch.
To the downside, if the pair extends its rejection the immediate support lies at 6,250. Below there, check for the 6,000 area and the 5,750 critical level.
