- The US SEC decided to postpone a decision on approving an ETF to 2019
- The move sparked a fresh sell-off, with Bitcoin, Ethereum, reaching new lows.
- Here are the levels to watch according to our proprietary technical tool.
The US Securities and Exchange Commission (SEC) decided to delay, once again, its decision on a request for an Exchange Traded Fund (ETF) for Bitcoin. The request, made by SolidX Partners and asset manager Van Eck had a deadline of December 29th but was pushed back to around February.
A Bitcoin ETF would enable mainstream investors to jump into the world of cryptocurrencies. Delays have been key adverse drivers of prices of digital coins during 2018. Some other applications were rejected, but this specific high profile one suffered endless delays.
Bitcoin lost the previous trough seen on November 24th, Ehtereum fell below $100, and Ripple also suffered a downfall, albeit did not hit new yearly lows.
Here are the levels to watch on Bitcoin, Ethereum, and Ripple.
BTC/USD low point is below $3,000
The previous trough for Bitcoin was $3,456 and recorded in late November. It now turns into resistance as we see a cluster of not only the monthly lows but also the previous 4h-High, the Simple Moving Average 10-1h, the Pivot Point one-month Support 1, and the Bollinger Band 4h-Lower.
Some support awaits at around $3,295 where we see the PP one-day S1, the BB 15m-Lower, and the BB 1h-Lower.
There are several support lines spread out on the way down but the most significant level to watch is only at around $2,975 where we find last year's low, followed by the Pivot Point one-week Support 2.
If BTC/USD overcomes $3,466, the next cap to watch is $3,580 which is the convergence of the SMA 5-4h, and the BB 1h-Middle.
ETH/USD targets $75 but has support beforehand
Ethereum has lost its second-place status and fell below $100. It faces quite a few hurdles before the round number.
$85.30 is the confluence of the Fibonacci 161.8% one-week, the SMA 5-15m, the SMA 10-15m, and it is followed closely by $86.16 where we see the PP one-day Support 3, the previous 1h-high, and the Bollinger Band 15m-Middle.
Further above, $87.93 features only one technical cap, but it is quite significant: the Pivot Point one-week Support 2.
Looking down, we see a cluster of support at around $81.20 where the Pivot Point one-day S2 and the Bolinger Band one-day Lower converge.
However, the target is much lower: at $75 we see the Pivot Point one-month Support 3.
The prospects for Vitalik Buterin's brainchild do not look that great.
XRP/USD faces an uphill battle
Ripple has not reached the yearly lows just yet, but the digital coin faces more resistance than support.
At $0.3210 it faces a dense cluster of resistance lines including the BB 1h-Middle, the PP one-month S1, last month's low, the SMA 5-4h, the Fibonacci 38.2% one-day, and others.
Before attempting a move on $0.3210, $0.31 is somewhat challenging as well. It includes the Bollinger Band 4h-Lower, the previous 4h-high, and the SMA 10-1h.
Looking down, $0.2929 is a support line featuring the Bollinger Band 15min-Lower, the previous 4h-Low, the Pivot Point one-day Support 1, and the BB one-day Lower.
The ultimate downside target is $0.2695 where we see the Pivot Point one-month Support 1.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.