SEC rejects Winklevoss's Bitcoin ETF, BTC/USD drops below $7,900

BTC/USD lost 3.7% on a daily basis amid bearish sentiments.
Bears threaten 50.0% Fibo retracement at $7,862.

Tanya Abrosimova Independent Analyst

The SEC rejected the application for bitcoin-related exchange-traded-fund submitted by Cameron and Tyler Winklevoss. That was their second attempt to create the first ETF tied to the digital coin; however, the regulator expressed concerns related to liquidity and custody issues. Two more proopsals for Bitcoin ETFs, submitted by VanEck and SolidX are still to be reviewd by the SEC.

The news pushed the digital coin No.1 below $8,000 handle, signalling deeper correction after the recent rally. Currently, BTC/USD is changing hands at $7,887, which is 3.7% lower on a daily basis. From the short-term point of view, Bitcoin moved to the oversold territory, but the trend is still remains bearsih

Bitcoin's technical picture

On the intraday level, BTC/USD dropped below both 50 and 100 SMAs (1-hour chart) and came close to critical 50.0% Fibo retracement at $7,862. If it is cleared, the downside may be extended towards 200-SMA at $7,720. On the upside, the local resistance is created by $8,000, followed by 100-SM<A at $8,044 and 50-SMA at $8,183.

BTC/USD, 1-hour chart

Author

Tanya Abrosimova

Independent Analyst

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