Bitcoin (BTC) Price Watch: Still a Chance for a Reversal?

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Bitcoin Price Key Highlights

• Bitcoin price recently broke above an inverse head and shoulders neckline to signal that an uptrend is underway.
• However, the SEC decision to reject a number of bitcoin ETF applications led to a sharp drop.
• Price appears to be finding support at the broken neckline, though, and could still resume the climb.

Bitcoin price retreated after breaking past its reversal pattern’s neckline but now seems to be drawing support again.

Technical Indicators Signals

The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, there’s a stronger chance for the selloff to resume than to reverse.

Price popped above the 100 SMA dynamic inflection point, though, so it might now hold as support. Bitcoin price is now testing this support zone and could see a bounce to the next ceiling at the 200 SMA.

However, RSI is pointing down to signal that sellers have the upper hand and could stay in control until oversold conditions are seen. Stochastic appears to be bottoming out without hitting oversold levels to signal that buyers are eager to return.

Market Factors

Reports that the SEC is getting ready to review the recently rejected set of bitcoin ETF applications gave traders hope again that an approval could be in the works or at least a longer review period. This also lifts optimism that the next set of bitcoin ETF applications might see more openness from the regulator instead of getting a quick rejection.

SEC secretary Brent Fields wrote in a letter addressed to NYSE Group senior counsel David De Gregorio:

“This letter is to notify you that, pursuant to Rule 43 I of the Commission’s Rules of Practice, 17 CFR 20 I .43 1, the Commission will review the delegated action. In accordance with Rule 431 (e), the August 22 order is stayed until the Commission orders otherwise.”