Bitcoin Top Forecast: Bulls beating the SEC futures rejections
- The BTC/USD fell sharply amid another postponement of an ETF decision.
- The technical picture is complicated, but this cryptocurrency still enjoys higher lows, a positive sign.
- The FX Poll shows a bull run in the medium term and a fall afterward.
The price of Bitcoin edged up in a relatively calm mid-summer week of trading. The stability, and more importantly the resilience, are both surprising given the circumstances. For a change, the SEC made its decision ahead of time and did not delay it. They flatly rejected no less than nine requests for Bitcoin ETF's. The most prominent requests came from ProShares, which proposed two Exchange Traded Funds on futures, one for Bitcoin longs and one for Shorts.
The latest development is that the Commissioners asked to review the decisions made by the staff, so the final word is not out yet. However, the BTC/USD did not move too much on the initial, outright rejection.
The shrugging off shows the resilience of Bitcoin. When something does not fall on bad news, it will likely rise on no news and rally hard on good news.
To understand more about ETF's see: Bitcoin ETF explained: 9 questions and answers about the critical crypto catalyst
The upcoming week is the last week of August, just ahead of the long Labour Day weekend in the US. We can expect a quiet week on the regulatory front, but that does not mean any price action. Bitcoin has outdone its primary rivals such as Ethereum and Ripple. Will we see any kind of catching up by the Altcoins?
The bigger battles may wait for September as the deadlines for two significant ETF requests are due.
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What's next for Bitcoin?
BTC/USD Technical Analysis - Some comfort from higher lows
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The BTC/USD is trading in a range with $6,600 capping short-term moves after keeping it down through the latter part of August. $6,850 is an important area of resistance: it capped Bitcoin in June and in July. It was also a temporary swing high in late August. And, it is backed up by the 50-day Simple Moving Average that awaits a bit above that level.
Moving higher, $7,200 was a support line when Bitcoin traded at higher ground in mid-July. $7,800 is next up.
Looking down, $6,200 was a support level in late August. $6,000 is a round number that held the price in mid-August and in mid-July as well. The 2018 trough of $5,800 is next in line.
The Forecast Poll of experts shows conflicting trends: neutral in the short-term, bullish in the medium term, and bearish in the long term. Forecasts have been upgraded for the medium and long terms.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
