Bitcoin (BTC) hit lows below $41,700 after Wall Street opened on December 15 as BTC price action sparked new sell-side pressure.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin bristles at SEC Coinbase rejection
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD plunging over $1,300, or 3.2%, on the day.
The largest cryptocurrency, which had just recovered from the sudden volatility the day before, failed to hold on at $43,000 as Bitcoin bulls were denied a continuation of the uptrend.
The BTC price weakness came with news that the U.S. Securities and Exchange Commission rejected a request from major exchange Coinbase to overhaul cryptocurrency rules.
“Today, the Commission rejected a regulatory application filed on behalf of Coinbase Global, Inc.,” said a statement from SEC Chairman Gary Gensler.
“I was happy to support the Commission’s decision for three reasons. First, existing laws and regulations apply to the crypto securities markets. Secondly, the SEC is also concerned with the crypto securities markets by setting rules. Third, it is important to preserve the Commission’s discretion in determining its own rulemaking priorities.”
The SEC is already caught up in the current crypto market narrative as it is expected to approve the first Bitcoin spot price exchange-traded funds (ETFs) in the US in early 2024.
In an interview with Bloomberg on December 13, Gensler acknowledged recent lawsuits related to the agency's repeated rejections of Bitcoin spot ETF applications.
The SEC, he said, “acts consistent with our authority and the courts' interpretation of our authority, and that is what we will do here.”
Popular trader Skew analyzed the latest order books and found increasing bid support tightening at $41,000.
“From here it will be interesting to increase the bid depth by about $41,000. Active offer around $44,000,” says a post on X (Twitter).
BTC/USDT order book data for Binance. Source: Skew/X
Subsequent analysis showed that low time frame exponential moving averages (EMAs) are now back in play.
$BTC 4H
The 4H EMAs are once again price-competitive and the RSI is currently below 50, with an important close imminent
These spot bids coincide with the 4H 100EMA and the 18D EMA
~ systematic bidding https://t.co/L89Nl6pW12 pic.twitter.com/G6CD5zCfXy
— Skew Δ (@52kskew) December 15, 2023
BTC price bulls in Fibonacci showdown
Meanwhile, Keith Alan, co-founder of trading resource Material Indicators, revealed that it continues to struggle to push a key weekly level back to support.
Related: US Dollar Hits 4-Month Low as Bitcoin Trader Predicts 10% Drop
This came in the form of the 0.5 Fibonacci retracement line near $42,500, one of several key hurdles to overcome on the way to the all-time high of $69,000.
When we look at the #Fibonacci levels from the ATH to the macro swing low for #Bitcoin, we see that we are testing support within the Golden Pocket. This is bullish if the 0.5 Fib level holds and leads to a breakout above the 0.618 level, but at the moment there seems to be a struggle to hold… pic.twitter.com/b5J6ajKbjh
— Keith Alan (@KAProductions) December 15, 2023
Key indicators also showed that high-volume traders were increasing their buying activity at the time of writing.
“Mega whales buying and trying to reclaim $42,000,” part of the X comment summarized.
BTC/USDT liquidity heatmap for Binance. Source: Material Indicators/X
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision.
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