Bitcoin moves within downtrend

14 August 2023 140
Bitcoin moves within downtrend

Unusually low volatility in bitcoin has been observed in recent weeks. Even gold overtook bitcoin at some points in terms of dynamics, which has never happened before. The cryptocurrency market is waiting for the SEC to decide on the bitcoin ETFs. On Friday, the SEC had already postponed a decision on one fund's application. The market didn’t actually react to this news in any way. Bitcoin also didn't pay attention to the U.S. consumer price index last week. The data was slightly better than expected when looking at the annualized figure.

According to Bloomberg Intelligence, the U.S. Securities and Exchange Commission (SEC) is expected to decide on the remaining filings by September 1. Some analysts believe those filings will also be delayed for a later term.

Traders say that ETF approval will both make bitcoin investing more accessible to ordinary investors and also help bring digital assets closer to traditional financial markets. On the other hand, regulators constantly point out fraud and manipulation in the cryptocurrency market. This is one of the reasons for not approving ETFs in the past.

It may well be that regulating this sphere will help globalize the industry. However, the SEC is litigating projects and not providing clear guidelines that would clearly regulate the crypto market now.

The SEC said it intends to challenge a federal judge's ruling that Ripple Labs Inc.'s XRP token isn't a security when sold to the public. This means that the SEC is ready to go all the way in regulating the industry. Surprisingly, the market didn’t react even to this negative news.

This week, there is almost no important economic data that could affect the bitcoin price. Therefore, the movement of quotes will depend more on the news background.

According to technical analysis, bitcoin is in consolidation. At the same time, we see a downtrend for the second month. Negative news can put additional pressure on the bitcoin price. The downside target will be the lower boundary of the trend at $28,000. We will place a stop-loss at the upward exit from consolidation, which corresponds to the price of $30,500.

Decrease in BTCUSD:

Take profit — 28,000

Stop-loss — 35,500

This content is for informational purposes only and is not intended to be investing advice.

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