FXEmpire.com –
Key Insights:
- Bitcoin slipped by 0.56% and ended at $25,882 on Friday after a 4.89% slide induced by SEC postponing BTC-Spot ETF reviews.
- Ripple has filed opposition to the SEC’s interlocutory appeal motion, highlighting reasons to decline the SEC motion.
- Toncoin (TON) led the way, with an 11.09% gain, due to the launch of the new programming language, Tact.
The Friday Overview
BTC-Spot ETF News Resonates: This week, the SEC pushed back the application for seven BTC-Spot ETFs to mid-October. While a one-month delay should not be detrimental to the crypto market, the push-back may continue beyond October as the SEC considers its options following the Grayscale ruling.
Ripple Files Opposition to SEC Appeal Motion: On Friday, Ripple filed its opposition to the SEC motion for interlocutory appeal. Ripple highlighted the reasons for the SEC application not meeting the requirements for interlocutory appeal. The defense team also stated it would appeal the Institutional sales ruling if the Court granted the SEC motion.
Toncoin (TON) Leads the Top 100: On Friday, Toncoin (TON) led the top 100 by market cap, gaining 11.09% to buck the broader market trend. Investors responded to the launch of Tact, a new programming language that will benefit developers ‘beginning their blockchain journey.’
Another Cambridge Study on Bitcoin Mining: The Cambridge Bitcoin Electricity Consumption Index team estimates Bitcoin energy consumption fell from 95.5 TWh in 2022 to 70.4 TWh in 2023. Across the US, tumble dryers consume 108 TWh. The US administration may need to reconsider Bitcoin mining as the major impediment to meeting President Joe Biden’s climate goals.
Bitcoin (BTC) slipped by 0.56% on Friday. Following an SEC-induced 4.89% slide on Thursday, BTC ended the day at $25,882. The markets continued reacting to the SEC pushing back seven BTC-Spot ETF reviews until mid-October.
Ethereum (ETH) declined by 1.06% on Friday. After a 3.50% loss on Thursday, ETH ended the session at $1,629. ETH had nowhere to hide, with the SEC likely to give ETH-Spot ETFs a similarly frosty reception. Investors showed no reaction to comments from the Judge presiding over the Uniswap case. Judge Failla labeled BTC and ETH commodities.
The Saturday Session
While dip buyers will likely return after the latest crypto market setback, the crypto market faces downside risk.
The ongoing SEC v Ripple and SEC v Coinbase cases will likely leave the US digital asset space in a regulatory void without US lawmaker involvement. We expect the outcome of the SEC cases against Coinbase and Ripple to define the US digital asset landscape.
However, investors should continue monitoring SEC and US lawmaker activity. Progress toward a digital asset framework would shift sentiment. Investors will likely respond favorably to legislation that drives innovation but protects investors.
Bitcoin (BTC) Price Actions
Daily Chart
On Friday, BTC broke under the trendline to test the $25,506 support band. While BTC broke above the trendline, the near-term bearish trend remains intact. Investor sentiment toward the SEC and the BTC-Spot ETF market joins a growing list of crypto headwinds.
A hold above the trend line would give the bulls a run at the $26,755 resistance band. However, a bearish cross of the 50-day EMA through the 200-day EMA would see BTC break under the trend line and $25,506 support band to target sub-$25,000.
Looking at the 14-Daily RSI, the 35.14 reading shows BTC with room to fall before entering oversold territory.
BTCUSD 020923 Daily Chart
4-Hourly Chart
Looking at the 4-Hourly Chart, BTC hovers above the trend line and the $25,506 support band. Adverse regulatory activity would support a break below the trend line and the support band to target sub-$25,000.
However, holding above the trend line would support a return to $26,000 to target the 50-day EMA. Updates from the Courts on SEC-crypto cases, spot ETF chatter, and US lawmaker commentary will influence.
The 14-4H RSI reading of 36.74 shows BTC has room to fall, leaving the trend line and the $25,506 support level in play.
BTCUSD 020923 4 Hourly Chart
Ethereum Price Action
Daily Chart
The Daily Chart showed ETH hovering above the $1,626 support band. The bearish August and start to September left ETH well below the trend line. A bearish cross of the 50-day EMA through the 200-day EMA added further price pressures. The lack of progress toward a BTC-Spot ETF leaves the future of ETH-Spot ETFs uncertain.
However, a hold above the $1,626 support band and a return to $1,650 would give the bulls a run at $1,700 and the $1,746 resistance band.
Looking at the 14-Daily RSI, 35.52 showed ETH has room to fall further before entering oversold territory.
ETHUSD 020923 Daily Chart
4-Hourly Chart
ETH/USD finds strong support at the $1,626 support level. However, a lack of a crypto catalyst would leave the ETH bearish trend intact. More adverse SEC news would likely lead to a fall through the support band to retarget sub-$1,600.
In the case of a favorable crypto event, an ETH move through the 50-day EMA would give the bulls a run at $1,700 and the 200-day EMA.
The 14-4H RSI reading of 36.46 shows ETH has more room before entering oversold territory.
ETHUSD 020923 4 Hourly Chart
This article was originally posted on FX Empire
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