Bitcoin (BTC) continues to look north and may rise to US$9,000 in the short term, despite the U.S. regulator's decision to reject a proposal for a bitcoin ETF.
The U.S. Securities and Exchange Commission (SEC) announced Wednesday that the ETF proposal submitted by Bitwise Asset Management in conjunction with NYSE Arca did not meet the requirements necessary to prevent market manipulation and illegal activities.
The leading cryptocurrency by market value reached a two-week high of $8,708 at Bitstamp and dropped to levels below $8,550 before CriptomonedaeICO reported the SEC's decision.
However, BTC remained green after the negative news and has been largely restricted to a narrow range of $8,500 to $8,650 in subsequent hours.
The resistance of the cryptocurrency is not surprising, as the market had established a low level of expectations following the regulator's repeated rejection of several ETF proposals in the last 12 months. Also, the low probability that the SEC would approve the ETF had a price long ago, according to a famous analyst Alex Kruger.
Bitcoin's ability to maintain profits may indicate that Wednesday's recovery was primarily driven by the U.S. Federal Reserve's decision to expand its balance sheet again.
Many observers had associated price increases with speculation that the SEC could approve a new bitcoin-based ETF. If that had been the case, the cryptocurrency would have faced a massive sale after the regulator's decision.
Overall, the doors remain open for BTC to continue to rise amid the FED's measure to increase its equilibrium. At the time of writing, the asset is changing hands to $8,530 in Bitstamp, representing a 3.54% increase on a 24-hour basis.
Short-term technical studies are calling for a higher move towards US$ 9,000.
Daily Chart and Weekly Chart
Bitcoin rose 5% on Wednesday, confirming the imminent reversal of the trend signaled by the bullish candlestick pattern outside Monday's bar.
The MACD histogram now produces higher bars above the zero line, indicating a strengthening of the bullish momentum.
Therefore, the BTC may find acceptance above the 200-day moving average (M.A.) resistance at US$ 8.632 and move up to the previous resistance converted into US$ 9.049 support in the short term.
On the higher path, the BTC could face resistance of US$ 8.9951, the 5-week downward-moving average.
4 Hour Chart
BTC rose above US$ 8.531 yesterday, confirming a double bottom break in the 4-hour chart and opening the doors for US$ 9.348 (target according to the movement method measured).
So far, monitoring has been inadequate, and the cryptocurrency is now causing a drop below the previous resistance converted into US$8.531 support.
However, that should not be a cause for concern for the bullish, as markets often shake their weak hands by testing the fall in demand before taking advantage of an upside break.
Besides, the short-term bullish case will remain intact as long as prices remain above the higher US$8,110 minimum created on October 9.
Bitcoin is a cryptocurrency, a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user-to-user on the peer-to-peer bitcoin network without the need for intermediaries.