Search ForexCrunch
  • A proposal made by Hester Pierse from SEC might have triggered BTC buying.
  • BTC/USD may enter a range-bound phase before another bullish wave.

Bitcoin has settled above $9,700 during early Asian hours on Friday. The first digital asset has gained 1.5% on a day-to-day basis and stayed unchanged since the beginning of the day. BTC reached new high of 2020 at $9,841 on Thursday. Bitcoin’s market dominance settled at 64.1%, while a number of accounts in the money increased to 80%.

Regulators soften their approach?

The member of the Securities and Exchange Commission (SEC) Hester Pierce also known as “Crypto Mom” suggested that the regulator should apply limited set of requirements towards companies token sales to allow them raise money and develop their projects. He believes that the firms should not face a regulatory brick wall as it hampers their competitiveness and slows down the innovations.

Some experts believe that this comments might have served as a trigger for Bitcoin’s rally on Thursday. However, the chances that her proposal will be approved are small a the head of the SEC is known for his tough approach to regulating initial token offerings (ICO).

BTC/USD: Technical picture implies more range-bound trading before a rush to $10,000

An upside momentum faded away and the coin entered a range-bound phase, which is likely to end in a new bullish wave with the next target at $10,000. BTC/USD printed two green candles on a daily chart and settled above pivotal technical level created by  38.2% Fibo retracement for the downside move from July 2019 high to December 2019 low ($9,300). The overall sentiments as well as the dominant trend remain bullish as long as the coin stays above with area. A sustainable move below this level will worsen the immediate technical picture and bring $9,000 back into focus.

On the upside, the next major barrier lies with psychological $10,000. The last time BTC/USD traded above $10,000 in the end of October; however, the gains were not sustained and the coin retreated to as low as $6,432 by December 18. Once this level is out of the way, the upside momentum will start growing exponentially. The next resistance created by 23.6% Fibo retracement at $10,150 is likely to be taken out easily. It is followed by  $10,500, which includes the previous recovery high and the highest level since October 2019.

Notably, the RSI on a daily chart stays flat right under an overbought territory, which is a signal of market indecision at this stage.

BTC/USD daily chart