Bitcoin Price Analysis: BTC/USD erases Coronavirus-driven gains as price nosedives to $8,500

  • Bitcoin price freefall price continues, unlikely to stop at $8,500.
  • The US SEC adds sorrow to a gloomy market with the rejection of another Bitcoin ETF.

Bitcoin price has been on a downward momentum since Monday this week. All the attempts to pull up from the dive have been squashed where the path of least resistance remains to the downside. The latest blow was the slide beneath the key $9,000 level where BTC/USD bearish leg extended to $8,500.

At the time of writing, Bitcoin is trading marginally below $8,700 a shallow recovery from the dip. A 1.16% loss has been posted on the day (during the Asian session). The trend at the momentum is bearish while the volatility remains high.

Other major cryptocurrencies such as Ethereum and Ripple are also in the negative having touched lows of $210.57 and $0.2245 respectively. Bitcoin Cash has not been spared from the bearish wave as it has sunk to $307 while Litecoin price dived under $60 to form a low at $57.33.

The SEC squashes BTC ETF hopes with another proposal rejection

The United States Securities and Exchange Commission on Wednesday rejected a Bitcoin exchange-fund (ETF) proposal filed by Wilshire Phoenix. The regulator cited failure by Wilshire Phoenix to prove that the Bitcoin market is immune or sufficiently resistant to market manipulation. The proposal was filed last summer with NYSE Arca. The filing said in part:

The Commission concludes that NYSE Arca has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), and, in particular, the requirement that the rules of a national securities exchange be 'designed to prevent fraudulent and manipulative acts and practices' and 'to protect investors and the public interest.

Bitcoin price technical analysis

Bitcoin price initial freefall from $10,500 was been attributed to technical reasons such as the digital asset being overbought due to the week-after-week rally since January. Moreover, the rally driven by the Coronavirus took a breather as the virus control took shape in China, although fears due to increased infections in other parts of the world continue to mount.

The most recent fall from levels above $9,000 to $8,500 is mostly attributed to the SEC’s rejection of another Bitcoin ETF as reported above. The news is likely to have angered the investors who have been hoping for such a product in 2020 after many proposals were rejected in 2019.

From a technical perspective, Bitcoin is likely to stay in the lower levels a while longer. The RSI is in the oversold region and still maintains a downward slope, which means selling activities are high, ignoring the oversold condition. The last resort for the bulls is the support offered by the 50% Fib retracement level taken between the last swing high of $10,500 to a swing low of $6,432 around $8,500, however, $8,000 is the primary support.

BTC/USD 240' chart


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Analysis: BTC/USD approaches $7,000, bulls may be disappointed once again

BTC/USD resumed the upside trend after a consolidation around $6,700 during the weekend. At the time of writing, BTC is changing hands at $6,930 and the upside momentum is gaining traction.

More Bitcoin News

Ripple Price Analysis: XRP/USD may return to $0.1800 before another bullish assault

XRP/USD is changing hands at $0.1850 with 2.6% of gains since the start of the day. The third-largest digital asset with the current market value of $8 billion has been moving within a strong bullish trend amid expanding volatility. 

More Ripple News

ETH/USD leaves $154.00 behind, no reversal in sight

ETH/USD jumped above $154.00 after the bulls managed to clear psychological $150.00. The second-largest digital asset has gained over 7% since the beginning of the day and 5% in the recent 24 hours amid Bitcoin-led recovery on the cryptocurrency market.

More Ethereum News

Cryptocurrency market update: Major cryptos remain on track to post weekly gains

Ethereum (ETH/USD) failed to hold above $150 earlier in the week but is still up 15.4% on a weekly basis at $143.50. $150 (Fibonacci 38.2% retracement of mid-March fall) aligns as the first critical resistance followed by $153.50 (Mar. 20 high).

More Ethereum News


Bitcoin Weekly Forecast: BTC breaks its ties with stocks, strives to return its safe-haven status

Most part of the week Bitcoin has been on the recovery path. Slowly but surely the coin left $6,500 behind and even tested waters above $7,000.

Read the weekly forecast