Bitcoin and Litecoin price analysis: Another SEC attempt to regulate Cryptocurrencies market
|- SEC publishes a statement declaring that Crypto trading platforms have the same status as stock markets, therefore imposing the same obligations on them.
Yesterday’s American trading saw important losses across the Crypto board after the SEC release a document which makes clear that those trading platforms that enable the trading of Cryptocurrencies should be registered. The Crypto platforms, therefore, have to apply the same standards than players in other markets. The US regulator also warns the investors they need to trade on SEC-regulated platforms if they want to be granted protection from US Federal laws.
BTC/USD 4H chart
BTC/USD set, during yesterday’s trading, a low at $9444, now the key price level to watch. A close below there would be very negative for the price action in the upcoming weeks. On the other hand, if the bearish movement stops here, Bitcoin might be onto a new very bullish outlook.
As of now, we only see two very key levels to watch in the mid-term: on the downside, the aforementioned $9444; on the upside, a very important resistance at $11865.
MACD in the Bitcoin 4-hour chart is consuming potential with this latest dip and is now looking horizontal, with a likely test of the trend signal. We could see a bullish attempt today, but it shouldn’t represent a change of trend in the short-term, looking more like a lateral move.
Directional Movement Index shows buyers completely out of play, at very low levels and with barely any reaction. Sellers also losing steam, with the D- located below ADX.
LTC/USD 1H chart
Litecoin has also drilled some supports, complicating its technical outlook, as it was the only of the main altcoins that had already completed the technical pattern, and was perfectly configured to go higher. The SEC statement has had a broad impact and might have caught Litecoin on the wrong foot.
The levels to watch are $194.50 on the upside and $174.50 on the downside as first support.
MACD in the Litecoin 1-hour chart still lacks amplitude between the mean and the signal. This indicator still looks quite flat and trading close to the 0 level.
Directional Movement Index in this Litecoin chart shows a similar profile to the Bitcoin one, with buyers in full retreat and sellers retracing from sky-high levels.
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