It was a bullish session on Tuesday, with BTC rising 0.51%, to end the day at $27,265. Hopes of a Ripple victory in the SEC vs. Ripple countered investor sentiment towards the CFTC’s move against Binance. Technical indicators remain bullish, with $28,500 in sight.
On Tuesday, Bitcoin (BTC) rose 0.51%. Partially reversing a 3.04% loss on Monday, BTC ended the day at $27,265.
A bearish start to the day saw BTC drop to a low of $26,636 by late morning. Moving away from the first major support level (S1) at $26,433, BTC rallied to an early afternoon high of $27,529. However, missing the first major resistance level (R1) at $27,924, BTC pulled back, to close the day at $27,265.
Hopes of a Ripple Victory Were Given in the SEC v. Ripple Case
It was a busy Tuesday, as investors responded to updates about the CFTC’s lawsuit against Binance, CZ, and other executives.
While the latest regulatory move against a crypto platform will bring further uncertainty, the Commodity Futures Trading Commission may have inadvertently made life easier for US platforms.
The SEC and CFTC have expressed conflicting views on whether Ethereum (ETH) is a security or a commodity, in an already opaque US regulatory landscape. The divergence supports a recent ruling by the presiding judge in the Voyager Digital bankruptcy case.
For the crypto market, regulatory infighting stands in contrast to other jurisdictions, which are making progress in delivering clear regulatory guidelines to support innovation and growth. Regulatory infighting may be enough for crypto investors to look to a Ripple win, to ease the influence of the SEC in the digital asset space.
It will be a quiet afternoon session with no US economic indicators to attract interest, leaving Fed talk to influence market sentiment. With markets expecting the Fed to pause interest rates in response to the collapse of Silicon Valley Bank and Signature Bank, there has been an increase in appetite for cryptocurrencies, albeit modestly.
With no US statistics to influence, the banking sector will once again be in the spotlight. US lawmakers will question the Federal Reserve over the collapse of Silicon Valley Bank in a second session.
Bitcoin (BTC) Price Action – Technical Indicators
This morning, BTC was up 0.04% at $27,277. A range-bound start to the day saw BTC fall to an initial low of $27,257 before finding support.
BTC needs to avoid the $27,143 pivot to target the first major resistance level (R1) at $27,651. A move through Tuesday’s high of $27.529 would indicate an extended bullish session. Crypto news wires need to 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 $28,036, and resistance at $28,500. The third major resistance level (R3) sits at $28,929.
BTC settled above the 100-day EMA ($26,483). The 50-day EMA turned down to the 100-day EMA, while the 100-day EMA broke out from the 200-day EMA, sending mixed signals.
A move through the 50-day EMA ($27,290) would support a break of R1 ($27,651) to target R2 ($28,036) and $28,500. However, a drop-through S1 ($26,758) would bring the 100-day EMA ($26,483) into play. A move through the 50-day EMA would send a bullish signal.
By Audy Castaneda