We have been keeping a close eye to the pending SEC decision which will deny or approve Bitcoin’s ETF for a second time. The price remains uncertain as it tested support multiple times over the weekend. Today, the price dropped over 7% as the correction approached.
While Bitcoin’s price is dropping, the latest spike in volume as the market approached the $1700 support line signals that traders are keeping a close eye on the cryptocurrency.
Chart: Tradingview
A chart on tradingview shows in interesting observation and prediction regarding the relationship between the price and the market’s RSI. According to carelkersna:
“Teal line from the break of March highs has acted as resistance in the middle of April. RSI recently (in the end of April) successfully broke through the line and had a nice run to the upside. Now, in the middle of May it is coming back to test the same line, will it act as a support or will it fall right through it?”
In other words, if the market volume stays high and the $1700 support holds, the RSI will top over 70, which should reflect positively in the market. On the other hand, if volume drops, most likely traders will exit their positions in the $1700 level and the price will topple downwards.
Either way, a big move is incoming soon, not only because of the recent market volatility, but also because of the upcoming SEC decision.
On the bright side, Chris DeRose – a Bitcoin evangelist, public speaker, and the lead organizer for the South Florida Bitcoin group – believes that the overall trend for Bitcoin will remain positive barring any political turmoils.
“My suspicion is that all the daily issuance is being snatched up by retail Bitcoin users, so I’d expect that if my hypothesis is true, barring any future big blocker political footballs, we’d see a fairly steady progression in the price, as the market realizes that Bitcoin isn’t actually in a bubble.”
Dislaimer: This is not trading advice, this article is for educational purposes only. If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.
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