Bitcoin (BTC) Price may Nosedive to US$30,000 Again as SEC Starts Review of Bitcoin ETFs

May 31, 2021
Bitcoin (BTC) Price may Nosedive to US$30,000 Again as SEC Starts Review of Bitcoin ETFs

Bitcoin price has again started moving rangebound and the lock-step trading has started to become mundane, to say the least. The price tried to move above the US$40,000 level but it couldn’t hold. It slid below the US$40,000 level and is currently trying to hold the US$36,000 support level. The inability of the buyers to lift above the US$40,000 level seems exhausting for buyers. 

The primary goal of the buyers is to get above the 50 SMA (Simple Moving Average) on the 4-hour chart. However, it seems that the BTC price against the US Dollar will not be able to go over and hold the US$38,000 level. This will pave way for a downward correction way below US$38,000. 

U.S. SEC enforcement head resigns after five days on the job | Reuters

The US Securities and Exchange Commission has started to review two Bitcoin ETF (exchange-traded funds) products, filed by SkyBridge and Fidelity. 

  • SkyBridge Capital filed an application on May 21, 2021, with SEC intending to come up with an ETF product named First Trust SkyBridge Bitcoin ETF Trust. It is intended to be traded on the NYSE (New York Stock Exchange). 

  • Fidelity Investment filed with SEC on May 25, 2021. Their investment product is referred to as Wise Origin Bitcoin Trust, which is intended to be traded on Cboe’s BZX exchange.

The short-term technical charts of Bitcoins show that the bearish pressure is going to take a toll on the bulls in the coming sessions. With the rejection of the US$40,000 level, RSI (Relative Strength Index) is retracing towards the midline, making bearish momentum to build up momentum. If the MACD (Moving Average Convergence Divergence) returns to the negative region, the downtrend will intensify. 

If the BTC/USD pair can’t hold the US$36,000 level successfully and the MACD line crosses over the signal line, the price will tumble down towards the US$30,000 level. 

Get weekly crypto market reports

Index performance, top and flops
and many more in our weekly digest

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.