Bitcoin Price Loses 7% As SEC Rejects Latest Bitcoin ETF Proposal

Bitcoin price has come back below the key $9,000 mark after the U.S. Security and Exchange Commission (SEC) rejected the latest bid from Wilshire Phoenix for a bitcoin-based exchange-traded fund (ETF).

Fundamental analysis: Another dream quashed

At this point in time, institutional investors must be asking themselves: Will Bitcoin ETF ever be launched? Another attempt to launch Bitcoin ETF, this time from Wilshire Phoenix, was shut down by the SEC.

As it was the case with previous attempts, the SEC is not convinced enough that the proposal is sufficiently resistant to market manipulation.

As a result, the SEC Commissioner Hester Peirce published a “dissenting statement” yesterday, questoning the Commission’s will to ever approve a Bitcoin ETF.

The SEC previously rejected attempts from NYSE Arca, which is owned by the Intercontinental Exchange, and Bats BZX Exchange to change a rule that would allow listing and trading of a Bitcoin ETF.

Technical analysis: Bulls lose the fight but not the war

In the past two weeks, Bitcoin has been moving lower after failing to move past the resistance at $10,300. As seen in the chart below, the price has in the meantime moved lower to test the first support at $8,775 in the context of 200-DMA.

Today’s test of the 200-DMA looks quite positive for the bulls as they are so far able to resist the bears. In case we close today above $8,900, a hammer candle will be formed - a bullish candlestick formation.

Nevertheless, the key horizontal support/resistance for Bitcoin is $9,150. If the bulls are successful and regain control over this level, there is still an opportunity to attack $10,300 and try to force its way toward the mid-term target near the $14,000 mark.

Summary

Bitcoin has fallen almost $2,000 in the last two weeks after the bulls failed to clear the $10,300 resistance. Yesterday’s decision from the SEC to reject another attempt to launch the Bitcoin ETF has only increased the pressure on bulls as the bears have been able to push the price back below the $9,000 handle.