Near-Term Technical Indicators Remain Bearish
Bitcoin's Continued Decline Raises Concerns
Bitcoin's (BTC) price has continued to fall, extending a losing streak to five sessions and closing at $29,586 on Sunday. The price hovered below $30,000 for the second day in a row, impacted by the uncertainty surrounding the potential approval of spot BTC ETFs. The near-term technical indicators remain bearish, signaling a possible drop to sub-$28,500 levels.
Daily and 4-Hourly Charts Present Mixed Signals
The Daily Chart of Bitcoin signals a bullish trend in the longer run as the 50-day EMA widens from the 200-day EMA. However, the 4-Hourly Chart reflects a bearish sentiment as the 50-day EMA narrows to the 200-day EMA. The 14-Daily RSI and the 14-4H RSI readings show bearish sentiment, hinting at a possible fall to sub-$28,500.
Political Influence on SEC's BTC Spot ETF Decision
Former SEC official John Reed Stark expressed skepticism that the current SEC will approve a bitcoin spot ETF application. Stark believes that a Republican victory in the 2024 Presidential Election could change the stance, possibly leading to a halt in most crypto-related SEC disruptions.
Legal Battles and Regulatory Uncertainties
The outcomes of the SEC's cases against Binance and Coinbase, along with the ARK Invest spot BTC ETF application, continue to be a significant factor affecting the market. If the SEC loses the case against Coinbase, a breakout rally may occur. However, current uncertainty remains a strong headwind for Bitcoin and related assets.
Potential Market Movements and Key Focus
A busier Monday session is anticipated, with potential impacts from SEC vs. Ripple-related chatter, ETF updates, and Coinbase-related news. Developments from U.S. lawmakers and the SEC will also need close attention as these could significantly influence market movements.
The Interplay Between Bitcoin and Forex
Bitcoin's price fluctuations aren't just a concern for crypto traders; they can have repercussions in the Forex market as well. Many Forex traders view Bitcoin as a viable investment alternative or even a safeguard against traditional currency instability. Current uncertainties, such as those surrounding BTC spot ETFs, legal matters with entities like Coinbase, and political dynamics, all send waves into the Forex market. Currency traders would do well to keep tabs on these Bitcoin-related developments. Understanding how Bitcoin behaves in today's financial climate isn't just interesting; it's essential. As global finance continues to evolve, so too does the relationship between Bitcoin and Forex, intertwining at least five times in various facets of market analysis. Stay informed, stay sharp, and recognize that in today's market, what happens in crypto doesn't always stay in crypto.