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Bitcoin Price Surges as US SEC Reviews 9 Bitcoin ETFs Today

November 5, 2018 at 19:33 by Arathur Stephen

The US Securities and Exchange Commission (SEC) is set to review nine Bitcoin ETFs on November 5, after having rejected them before. Crypto community and analysts, however, had assumed that the SEC’s deadline was set for October 26, 2018, but that was not the case.

What Causes Bitcoin ETFs Rejection?

During August 2018, SEC delegated ETF reviewing task to its delegates and the staff acting on behalf of commission reached a negative decision and concluded the ETF assigned task with rejections. Nevertheless, this was not a final decision as the  Commission still retained the power to review the decision its delegates had made.

In its note published on August 22, the SEC made the declaration:

In accordance with Rule 43 1 (e), the August 22 order is stayed until the Commission orders otherwise. The Office of the Secretary will notify you of any pertinent action taken by the Commission.

The recent supporting documents showed that the commision will review five ETF proposals from Direxion, two ETFs each from ProShares as well as GraniteShares. Furthermore, the regulator has been seeking comments from concerned parties before November 5.

The SEC has also set a common deadline for all the nine ETFs focused on the number one digital coin. A statement from the regulator reads:

Accordingly, IT IS ORDERED, pursuant to Commission Rule of Practice 431, that by November 5, 2018, any party or other person may file a statement in support of, or in opposition to, the action made pursuant to delegated authority.

SEC Decision Can Be Made Any Time After Today

This official announcement would mean that the regulator could make the final decision only after November 5, 2018, after assessing the comments received from different parties. Any grieved party, according to the SEC’s statement, can put on record their remarks about the ETFs and the commission would hand over the information to the crypto news websites.

Moreover, this scenario will have its likely impact on the price of Bitcoin and other virtual currencies. There has been silence for quite some time on the Bitcoin ETFs front, and the market is breathless in anticipation for the outcome. Notwithstanding, there has not been much of enthusiasm among Bitcoin supporters since the regulator has not given its blessing on any ETFs focused on digital coins.

BTCUSD Technical Forecast

The flagship cryptocurrency has gained about 1.5% in the past 24 hours according to CoinMarketCap. The same source has also recorded that the digital coin trade volume at $4.4 billion is very close to last week’s average. The market capitalization is quite less than last week average. The price, however, has gained about 2% since the start of November.

The BTCUSD pair had been in an upward trend since last week, nevertheless, the price movement was insignificant. The bears broke the $6,500 price level on October 29 and the price dropped to a low of $6,330, to begin its bullish movement. Bitcoin price is now below the 12-day EMA and the 26-day EMA which is a bearish trend.

The Stochastic, on the other hand, is in the range above 40 which shows a buy signal and also indicates that the bulls are now gaining momentum over the bears. The bottom line is that the Bitcoin price will encounter resistance at the $6,600 price level. If the price breaks the $6,600 price level, there is a possibility that it will reach the highs of  $6,800 and $ 7,400. However, if the price is repelled at the $6,600 price level, the virtual coin will find support at $6,200 or $6,000.

Meanwhile, the 4-hour chart shows that Bitcoin price is in a bearish trend. The price reached the high of $6,529 on November 4 but was resisted. BTC price is now advancing towards the previous low. The Stochastic is below 80 on the lower time frame which gives a sell signal.

Resistance levels: $7,000, $7,200, $7,400

Support levels: $6,300, $6,100, $5,900

If you have any questions and comments on Bitcoin today, use the form below to reply.

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