Bitcoin trades lower today but may find support at key Fibonacci level
- Volume on the Coinbase exchange supporting the sell side
- Key 61.8% Fibonacci level could provide some support
- BTC/USD currently fighting to reject the 10,500.00 support
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Most of the major cryptocurrencies trate lower today as sentiment is looking weak. BTC/USD hit a low of 10,353.00 with volume clearly backing the sell side. Since the bearish pennant pattern break on the 4-hour chart broke down on 10th August it seems the bears have really been in control.
The recent news that the US securities and exhange comission (SEC) announced a delay on the Van Eck ETF decsion seems to have really hurt the crypto space. Price action has been muted and it seems like the can kicking exercise it just a delay tactic as the regulators look for more reasons disapprove the proposal. It does not end there as the final decisions are expected to be released on the 13th and 18th October but the next decision on the Wilshire Phoenix proposal is scheduled for 29th Sept.
Looking ahead to price action today, it will be interesting to see if price can rally back above the 10,500.00 level. The crashing renminbi is also a key catalyst for a move higher in BTC as if the Chinese government move into Hong Kong to stop protesters there could be a safe haven move into cryptocurrencies.
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
