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  • BTC/USD is capped by strong resistance area.
  • The market is getting ready for the SEC’s decision.

Bitcoin has recovered from Sunday’s crash to trade at $6,510 by the time of writing. The digital coin No.1 has been sitting under $6,530 resistance area for five days now as the upside momentum is waning.  

Looking technically, a strong confluence of technical levels created by 23.6% Fibo retracement (weekly) and a host of SMAs including SMA100 and SMA10 on 1-hour chart, is likely to cap the recovery for the time being as the market lacks the motivation to push the prices higher. However, once this area is cleared, the recovery may gain traction and take BTC/USD towards $6,600 handle guarded by Fibo 38.2% (monthly). That’s what is needed to reduce the bearish pressure and encourage more short-term buying towards psychological $7,000.

The route to the South is less crowded, though Fibo 23.6% (daily), SMA200 (1-hour) and SMA50 (4-hour) are likely to discourage sellers on approach to $6,400, while the ultimate support is created by the upside trendline currently at $6,300.

From the fundamental point of view, the cryptocurrency market players are bracing for the SEC’s Bitcoin ETF ruling scheduled for September 30. Any signs that the regulator might make a favorable decision on the subject will instigate significant gains for Bitcoin and other cryptos.

The anticipation for the SEC bitcoin ETF ruling is building up as we are past the halfway point of the month and the deadline is around the last week of September. Indications that an approval is likely could mean significant gains for bitcoin price.

BTC/USD, 1-hour chart


 

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