Bitcoin price analysis: Intensifies downward spiral as the U.S. SEC rejects 9 separate Bitcoin ETFs

Bitcoin price has been on a wild rollercoaster ride the past couple of days. First, traders woke up yesterday to surging prices that were almost blowing off the roof at $6,900. However, on the same day, Bitcoin plunged below key support areas not only canceling the gains that had been made but also extended the declines below $6,300. The sharp ascent at the opening of the session on Wednesday 22 saw BTC/USD break above the stubborn resistance at $6,600, spiked above $6,700 and blasted past the critical resistance at $6,800 before stalling at $6,875.

The bears entered pushing the price down, but the downside was for a while protected at the 61.8% Fib retracement level with the last swing high of $6,893.23 and a swing low of $6,225.13 at $6,637.32. A bear break of this technical level couple with the news that the U.S. Security and Exchange Commission rejecting nine separate Bitcoin Exchange Traded Funds (ETFs) spooked the price even more as BTC/USD plummeted smashing below $6,600 and $6,500. Buyers tried to halt the declines above $6,400 but the selling rally continued past the support at $6,300. Bitcoin formed a low of $6,250 before bouncing back up above $6,300.

At present, the crypto is trading at $6,394 after dropping from the intraday high of $6,433.19. The buyers are seeking support at the 23.6% Fib level at $6,383.14. The technicals for Bitcoin are negative at the moment, besides the MACD is confined in the bearish zone while the gap between the moving averages continues to increase. The 50 15-minutes simple moving average is limiting gains while the nest resistance is at $6,450. There are a couple of significant support areas at $6,350 and $6,300 but the primary support is highlighted at $6,250.

Bitcoin ETFs

The U.S. SEC has once again rejected the applications for nine separate Bitcoin Exchanged Traded Funds (ETFs). The decision was made on Wednesday and once again a blow on the attempt to build a crypto ETF. The Wall Street Journal reported on the same day that:

“The commission issued three orders late on Wednesday, one for each of the applications from the firms ProShares, Direxion and GraniteShares.”

The journey for getting approval on Bitcoin ETF began four years ago with a proposal by Cameron and Tyler Winklevoss. This application has been rejected not once but twice. There was another rejected proposal from a company referred to as SolidX. The SEC said in the case of ProShares Bitcoin ETF rejection:

"...the Commission is disapproving this proposed rule change because, as discussed below, the Exchange 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 the Exchange Act Section 6(b)(5), in particular the requirement that a national securities exchange's rules be designed to prevent fraudulent and manipulative acts and practices."

The same reason was given for the rejection of the two other applications, Direxion and GraniteShares. The SEC went ahead emphasizing according to CoinDesk that

"Its disapproval does not rest on an evaluation of whether bitcoin or blockchain technology more generally, has utility or value as an innovation or an investment."

BTC/USD 15-minutes chart