BTC Price Analysis: All Eyes on the SEC, Is Bitcoin Ready For $8,500
Today’s Bitcoin (BTC) News
That Bitcoin is already disrupting traditional finance is true. Gradually, Bitcoin as a settlement layer is finding use and more are flocking to the immutable, secure and cheap platform for cross border fund transfer.
Given the opportunities and the problems that Bitcoin solves as latency and extra expenditure through exorbitant fees charged by legacy networks as Visa and MasterCard, there is infrastructure development. Fidelity is weighing in, creating custody for Bitcoin and as Bakkt readies to launch once they receive the green lights from the US CFTC allowing investors to funnel their monies into Bitcoin with an assurance of oversight, Bitcoin is already printing double digit gains and bottoming up from Dec 2018 pits.
But there could be more gains in days ahead. Prevailing sentiment is supportive of Bitcoin and there could be FOMO if for some reasons the US SEC approves the Bitwise and VanEck Bitcoin ETF applications tomorrow.
These applications were received by the US SEC registries in mid-February and as the law mandates the agency can either approve, reject or delay their decision. If they reject then Bitcoin will likely pull back allowing traders to buy on dips and should they approve, then Bitcoin (BTC) will likely soar to the $12k mark or higher as the SEC legitimize the asset as institutional investors flow, pumping prices.
BTC/USD Price Analysis
At the time of press, Bitcoin (BTC) is stable but up 13.5 percent in the last week. Overly, this is bullish for Bitcoin and in a bullish breakout pattern, May 17th pull back allow for traders to enter at a discount in readiness for possible upswings above $8,500 in a trend continuation phase.
Note that, the correction of May 17th was a correction of the over-valuation of May 11-15th overvaluation. This is so because there are five bull bars that close above the upper Bollinger Bands (BB). Considering the setting and BB rules, any close above or below the upper or lower BB points to an over-extension that can be an under-valuation or over-pricing that rarely occur, printing 5 percent of the time.
Because price action brought back BTC to equilibrium allowing purchase at fair value, traders can therefore snap up the asset with targets at $8,500. However, for assurance, risk-averse, conservative traders can wait for conclusive close above $8,500.
Ideally, behind this close above should be high transaction volumes exceeding 47k of May 13th. If that prints, then the leg up would be at the back of high participation and odds are prices will rally towards $10k or $11.5k.
All Charts Courtesy of Trading View—CoinBase
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.