- SEC rejects new ETF proposal but sparks criticism from its own members.
- Top 3 cryptos reach the first line of defense before the downhill territory.
- A new record was set yesterday in the volume of Bitcoin traded in the world, $50.4 billion.
The crypto market is going through its most critical hours in this year 2020. The falls of the last few hours are pushing prices to the limit of the bullish scenarios and playing dangerously with the bearish scenarios that were so hard to leave behind.
The BTC/USD pair reached the bearish limit of the scenario just on the day it set a new record for volume traded in 24 hours at $50.4 Billion. By capitalization, the loss in value in the last week is 27 Billion.
It is not possible to understand the slowness of regulators on a global scale to establish a regulatory framework for this substantial daily trading volume.
The last SEC decision provides us with an example of the current contradictions to us by the SEC:
“SEC Commissioner Hester Peirce presents his disagreement with the agency's rejection of the Bitcoin ETF proposal”
“The U.S. Securities and Exchange Commission (SEC) has once again rejected a listed fund from Bitcoin - and one of the agency's commissioners has publicly stated his disagreement with the measure. In her latest published dissenting statement, Hester Peirce noted that:
‘the Commission once again disapproved a proposed rule change that would give American investors access to bitcoin through a product that is listed and traded on national stock exchange subject to the Commission's regulatory framework.’
‘The Commission's approach to these products traded on the bitcoin exchange is frustrating because it shows a stubborn disregard for innovation’.”
Today, the vice-governor of the Bank of Japan, Masazumi Wakatabe, declared that they would study the pros and cons of digital currencies. Despite the issuance of digital currency, central banks will remain lenders of last resort:
“Instead of focusing only on the digital currency of the central bank and the private sector, we must pay attention to how they will interact with each other.”
ETH/BTC Daily Chart
ETH/BTC is currently trading at the price level of 0.0260 and is rising for the first time in three days. Congestion support at 0.025 has worked perfectly and is the reference level to watch.
Above the current price, the first resistance level is at 0.027, then the second at 0.0275 and the third one at 0.029.
Below the current price, the first support level is at 0.025, then the second at 0.023 and the third one at 0.022.
The MACD on the daily chart maintains yesterday's bearish trend in the expectation that it will make up for lost ground today and give a second chance to the previous bullish momentum.
The DMI on the daily chart shows a tie between the two sides of the market, a clear indication of the current momentum.
BTC/USD Daily Chart
BTC/USD is currently trading at $8787 after touching the downward trend line of the previous bearish scenario in the Asian session.
Above the current price, the first resistance level is at $9150, then the second at $9650 and the third at $10500.
Below the current price, the first support level is at $8800, then the second at $8550 and the third one at $8400.
The MACD on the daily chart is reaching the neutral level and is losing some of its downward momentum. This setup shows a point where a bullish reversal can occur, although the odds are low.
The DMI on the daily chart shows a very favorable profile for the selling side. Bears get above the ADX line and trigger a price control pattern.
ETH/USD Daily Chart
ETH/USD is currently trading at the price level of $227.2 and is rebounding from the EMA50 at the price level of $215.
Above the current price, the first resistance level is at $235, then the second at $250 and the third one at $260.
Below the current price, the first level of support is at $220, then the second at $215 and the third one at $205.
The MACD on the daily chart is losing its downward momentum, but it is not a determining factor in the short term. The distance to the neutral level of the indicator shows a lot of bearish potentials still pending.
The DMI on the daily chart shows the bears above the bulls, a setup not seen since the beginning of January.
XRP/USD Daily Chart
The XRP/USD pair is currently trading at the price level of $0.236 after finding support at the $0.225 level. With today's rally, the XRP/USD pair regains support for the SMA100.
Above the current price, the first resistance level is at $0.24, then the second at $0.252 and the third one at $0.27.
Below the current price, the first support level is at $0.225, then the second at $0.219 and the third one at $0.207.
The MACD on the daily chart shows a loss of downward momentum as the indicator reaches its neutral level. The probability of a bullish move exists, but it is statistically inefficient.
The DMI on the daily chart shows the bearish trend has reached its peak. At the moment, the sell-side has not managed to break above the ADX line.
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