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BTC Considers Below $28,500 Due to New SEC Fees

Key Findings:

  • On Monday, BTC joined the broader market in the red, falling 0.27% to close the day at $29,336.
  • The SEC is taking action against Richard Heart, Hex, Pulsex, and PulseChain, and an exploit by Curve Finance strained the situation.
  • Short term technical indicators remained bearish signaling a return below $28,500.

Bitcoin (BTC) fell 0.27% on Monday. After a 0.27% drop on Sunday, BTC ended the day at $29,336. Significantly, BTC remained below $30,000 for the seventh straight day.

Bitcoin (BTC) price history

This morning, BTC is up 0.18% to $29,389. After a mixed start to the day, BTC fell to an early low of $29,318 before stabilizing.

daily chart

The daily chart showed BTC/USD below the $30,750 – $31,250 resistance band. BTC also remained below the 50-day EMA ($29,444) and held above the 200-day EMA ($27,050), sending bearish short-term but bullish price signals in the longer term. Notably, the 50-day EMA tightened against the 200-day EMA, which favored further losses.

Looking at the 14-day RSI, the 44.48 level reflects bearish sentiment. The RSI is signaling a BTC decline below $28,500 to target the $27,500-$26,850 support band. However, a move through the 50-day EMA ($29,444) would provide the bulls with a rush to $30,000 and the $30,750-$31,250 resistance band.

BTCUSD 010823 daily chart

4 hour chart

On the 4-hour chart, BTC remains below the $30,750-$31,250 resistance band and the 50-day ($29,514) and 200-day EMAs ($29,687), indicating bearish price momentum .

Significantly, after the bearish cross, the 50-day EMA continued to retreat from the 200-day EMA, signaling a return below $28,500. However, a BTC move through the 50-day ($29,514) and 200-day ($29,687) EMAs would support a break of the $30,750-$31,250 resistance band.

The 14-4H RSI level at 48.00 is signaling a bearish stance with selling pressures outweighing buying pressures. Significantly, the RSI is in line with the 50-day EMA, signaling near-term bearish momentum and a return to below $28,500.

BTCUSD 010823 4 hour chart

SEC activity and Curve Finance exploit news leaves BTC in the red

It was a busy Monday and cryptocurrency news outlets drew a lot of interest as investors await updates on the spot BTC ETF applications.

Following Judge Torres’ ruling, the SEC resumed its regulation through enforcement policy, indicting Peter Heart, Hex, PulseChain, and PulseX for the unregistered offering and sale of crypto-asset securities to retail investors and by using investor funds to swindle investors Financing cheated, among other things, his lavish lifestyle.

News of an exploit by Curve Finance was also bearish, as the loss of investor funds would likely draw the ire of the SEC and US Democrats.

The latest move by the SEC and Curve Finance comes just days after SEC Chairman Gary Gensler reminded markets of his take on the digital asset space. Illegal activity in the mainstream digital asset space could give the SEC reasons to deny the spot BTC ETF filings in the interests of investor protection.

The day ahead

US economic indicators are positive this afternoon. ISM manufacturing PMI reading for July will attract interest. Investors should consider the numbers and reasons why the Fed is firmly on the table for a September rate hike.

Beyond the economic calendar, however, crypto news outlets will continue to have an impact. Investors should keep an eye on SEC-Ripple chatter, ETF updates, and news related to Binance and Coinbase (COIN).

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