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  • Bitcoin path of least resistance is to the upside, likely to reclaim $8,000.
  • The US SEC rejects Winklevoss application for Bitcoin ETFs; the market frowns.

Bitcoin has plunged back below $8,000 after sliding below the trendline support around $8,200. The price is currently supported by the 50% Fib level between the highs of $8,488.00 and the lows at $7,330.14 close to $7,910.57. The 200 SMA on the 30-minutes chart is also offering support at the same dynamic inflection position.

The trend is bullish at the time of press, besides the RSI has recovered from the oversold, showing that the sellers are exhausted and allowing the buyers to enter. The stochastic is at 85% confirming the bullish trend. Moreover, the path of least resistance is to the upside and the target is on reclaiming $8,000.The 100 SMA is above the longer term 200 SMA, which means that Bitcoin has the potential to hit $8,140 (100 SMA inflection point) leading to another catapult pullback towards $8,300 and eventually $8,500.

On the downside, Bitcoin is likely to break down further if it smashes below the 50% Fib support and the 38% Fib support at $7,773.74. If these support zones are broken, Bitcoin price could test $7,500 and $7,000.

Bitcoin decline is likely connected to news of the Security Exchange Commission (SEC) in the US rejecting the Winklevoss Bitcoin ETF application. However, there are other proposals for Bitcoin ETF currently with the SEC. For now, investors must exercise patience as they wait on the verdict on other applications to come forth in September after the authority elected to delay the verdict on proposed Bitcoin ETFs.

BTC/USD 30-minutes chart