It was a bearish session on Thursday, with BTC tumbling 1.14%, to end the day at $28,021. Investor sentiment towards the SEC soured, and profit-taking gave BTC a short-lived return to $29,000. However, technical indicators remain bullish, with $30,000 in sight.
On Thursday, bitcoin (BTC) fell 1.14%. Partially reversing a 3.96% rally on Wednesday, BTC ended the day at $28,021. Despite the bearish session, BTC avoided sub-$27,000 for the second session in a row.
A bullish start to the day saw BTC rally to an early morning high of $29,171. BTC broke above the first major resistance level (R1) at $28,911, before pulling back. The reversal saw BTC slide to a low of $27,677 by late afternoon. Moving away from the first major support level (S1) at $27,515, however, BTC found late support, to close the day at $28,021.
Gensler and $2.4 Billion in Funding for Scared Investors
Investor sentiment turned bearish on Thursday morning. SEC Chairman Gary Gensler’s talk about targeting $2.4 billion in funding to hire more staff and increase regulation through enforcement weighed on BTC and the broader crypto market.
A US anti-crypto administration approval of $2.4 billion in SEC funds would empower the SEC to crack down on the digital asset space in the US.
Market reaction to the news led to BTC delinking from the NASDAQ Composite Index, which was up 0.73% on Thursday. This morning, the NASDAQ mini was up 35.5 points.
Following the latest SEC funding request, investors should continue to monitor conversations by US lawmakers and regulatory activity. An increase in regulation through the application would test the appetite of buyers.
However, updates to the ongoing SEC vs. Ripple case, as well as news related to Binance and Coinbase (COIN), will also need to be followed. It is expected that the updates of the SEC vs. Ripple case have more influence. A Ripple victory would blow the sails of the SEC.
This afternoon, US economic indicators will also give direction. US personal income/spending and core PCE price index figures will be in the spotlight. An unexpected pick-up in inflationary pressure would test support.
Bitcoin (BTC) Price Action – Technical Indicators
This morning, BTC rose 0.05% to $28,035. A range-bound start to the day saw BTC rally to an early high of $28,049 before pulling back.
BTC needs to move through the $28,290 pivot, to target the first major resistance level (R1) at $28,902, and Thursday’s high of $29,171. A return to $28,500 would indicate a prolonged bullish session. Crypto news wires and US stats should be crypto-friendly to support a prolonged rally.
In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $29,784, and resistance at $30,000. The third major resistance level (R3) sits at $31,278.
BTC settled above the 50-day EMA ($27,680). The 50-day EMA has turned away from the 100-day EMA, and the 100-day EMA has broken out from the 200-day EMA, sending bullish signals.
A hold above the 50-day EMA ($27,680) would support a break of R1 ($28,902) to target R2 ($29,784) and $30,000. However, a drop through the 50-day EMA ($27 680) and S1 ($27,408) would bring into sight the 100-day EMA ($26,875) and S2 ($26,796). A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda
