- Six months since Cboe filed the proposed rule change, a withdrawal is made.
- Bitcoin is poised for an upward move that could test the supply zone at $3,600.
Bitcoin is creeping higher only a day after the market work up to the news that the much-anticipated Bitcoin exchange-traded fund (ETF) might on the verge of collapse. According to a notice published on the U.S. Securities and Exchange Commission (SEC) BZX withdrew the proposed rule change on January 22, 2019. The commission did not give any reason that led to the withdrawal. However, it believed that the current government shut down in the United States could have contributed greatly. Jake Chervinsky recently wrote to the crypto community on Twitter regarding the shutdown saying:
“The VanEck/SolidX bitcoin ETF won’t be automatically approved just because the US government is shut down. I’ve seen a lot of confusion & misinformation about how the shutdown affects the SEC and its process for handling ETF proposals.”
Cboe filed its first proposal on July 2, 2018, but the SEC moved to delay the rule change a number of times. Six months down the line with the rule change withdrawn, only confusion and disappointment remain.
Bitcoin price, on the other hand, appears to be ignoring the negative news and is making gains on the day. The asset is trading in the green having added at least 0.35%. Moreover, it is nearing a breakout from the contracting triangle. BTC/USD has also corrected above both the 50-day Simple Moving Average (SMA) and the 100-day SMA. While exchanging at $3,571 at press time, it is poised for an upward move that could test the supply zone at $3,600, a move that could accelerate the rice towards the next supply zone at $3,700. The first support is seen at $3,500 while the second is at $3,480. In case of extended declines, $3,450 will come in handy.
BTC/USD 1-hour chart
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