Bitcoin Price Prediction: Bullish consolidation around $8,000 as markets digest the SEC decision and $9,418 is eyed
|- Bitcoin is consolidating its recent gains in a well-defined range.
- The SEC decision on Bitwise's Bitcoin ETF served as a trigger for the sell-off.
- The four-hour chart shows a bullish outlook.
BTC/USD is trading around $8,000 consolidating the recent leg higher. Despite the rapid and somewhat erratic ascent, the king of cryptocurrencies is trading in a well-defined range.
The US Securities and Exchanges Commission (SEC) has decided to postpone its ruling on a request for another Exchange Traded Fund (ETF) for Bitcoin. It decided to postpone the decision for another five weeks amid concerns about some of the details.
Investors took advantage of the bearish news to consolidate and take profit on previous gains. However, the SEC's rejections and delays do not impact the prices of cryptos as they used to.
BTC/USD Technical Analysis
The four-hour chart shows a clear trading range for the granddaddy of digital assets. The bottom is $7,683, which was the swing low and also the peak of the previous rise. The line is critical support after its role as a separator of ranges.
The top of the range is the yearly high of $8,350. We are now seeing a narrowing range of between $7,832 and $8,192.
A drop below $7,683 opens the door to $7,291 which is the 61.8% Fibonacci retracement of the move seen so far in May. The 50% retracement is at $6,954.
These Fibonacci lines are also useful in setting targets for the next bullish run. $9,418, is the 1382.% level and $10,127 is the 161.8% level, which still seems far.
The four-hour chart shows that the Relative Strength Index is below 70, thus not indicating overbought conditions. Momentum remains positive.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.