The price of Bitcoin was $6,571 yesterday and dropped by 2% today to $6,436. The price course under the horizontal support of $6,516 could be seen as an indicator for a breakout from the existing symmetrical price action triangle possibly occurring from the downside.
Please enter Coingecko Free Api Key to get this plugin works.According to the hourly chart, it is evident that the price broke the secondary support trend line, currently retesting the horizontal support level from above. The price plummeted under $6,516 horizontal support and created a U-shaped dip. However, when the price jumped above it again and left two large wicks, the momentum slowed drastically down, indicating the price to be entered in sellers’ zone.
According to the 4-hour chart, please find my Elliott Wave count and my projection. Following a complex correction, the trend will continue. The existing minor corrective structure is the second wave of a reactive wave headed downwards with a target of around $4,700 I believe.
Looking at the daily chart in detail, you can see from where the horizontal support levels and other substantial levels originate. The bold black line is the baseline support level for this downtrend.
When you look at the daily chart, you can see the two targets I indicated. My primary target, projected on Elliott Wave principles, stands on the baseline support and the horizontal support of $4,640 or around $4,700. The area acts as a bold support. When the price breaks the horizontal support of $5,767, I would keep this scenario in my mind.
The second target was estimated as a half from vertical triangle side and projected on the anticipated breakout level afterwards. In the past, the red triangle support was broken and weakened it in every stage. That’s why I believe now it’s not going to keep its position. If the support level of $6,390 gets broken, I would expect that the price starts plummeting in a straight downtrend line with a long red candle. This triangle is a dominant pattern with this scenario’s projected target $4,000.
Being aware of my projections and the substantial levels, you can now see my estimated breakout area.
This zone is of significant importance. In order to identify the market course for future, I will keep what is happening here in my mind. This area is the junction of three substantial levels as the horizontal support, the triangle support, and the secondary symmetrical triangle support. If the combination of the three cannot keep the price, then what is a definite scenario is the long red candle. This area is to be considered significant.
I expect a breakout from the downside as today, the horizontal support has been broken. In the past, when the price faced support on the symmetrical triangle’s upward trend line, respected backwards, the support of the red triangle has been broken. We would clearly see a lower dip under $5,767 if the last support breaks down.
Is it a sticky end? Might actually be.
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Why not Bitcoin ETFs but Bitcoin futures were regulated by the U.S.?
CFTC’s chairperson identifies why the U.S. has regulated Bitcoin futures rather than Bitcoin ETFs.
The U.S. Commodity Futures Trading Commission’s (CFTC) chairperson has identified the reason for Bitcoin futures getting approved in the U.S. Instead of Bitcoin ETFs. Furthermore, he shared what he thinks of the future of cryptocurrencies and how they would solve currency-associated issues in almost two-thirds of the world.
Bitcoin Futures and Bitcoin ETFs
As the CFTC’s chairperson, Chris Giancarlo shared his thoughts on Monday about Bitcoin futures trading on the U.S. regulated exchanges instead of Bitcoin exchange-traded funds (ETFs). Unlike Bitcoin ETFs being securities under the U.S. Securities and Exchange Commission’s (SEC) jurisdiction, Bitcoin is a commodity. Chris Giancarlo told about this disparity in the interview with CNBC.
He also stated the CFTC and the SEC to have “different orientations, different histories, so we do come at these things from different perspectives.”
Regulatory Focus by CFTC
Giancarlo said, in parallel with the regulatory focus of CFTC: “We are very focused on the fraud and manipulation aspects of cryptocurrency markets right now.”
The chairperson noted his agency’s role in balancing regulations and innovations and claimed:
CFTC’s chairperson thinks that the crypto will keep its position.
About the future of cryptocurrencies in two years, the chairperson stated:
“I personally think that cryptocurrencies are here to stay.”
Giancarlo said that within around ten years, “there are 140 countries in the world, every one of them has a currency. Probably two-thirds of them are not worth the polymer of the paper they are written on. Those parts of the world rely on hard currencies. Bitcoin may solve some of the problems, whether it’s bitcoin or another cryptocurrency.”
