The Bitcoin continues to face a lot of hurdles while climbing the upside.
The MACD is moving into the bearish zone. The RSI for BTC/USD is correcting lower at the 60 levels.
Major support levels are seen at $8,150 and $8,050. Major resistance levels are seen at $8,350, $8,400, and $8,500 respectively.
The US SEC has reinstated that the BTC is not a security. Cipher Technologies Bitcoin Fund applied at the SEC to register as an investment company; however, the application was denied stating that BTC was not a security.
Security is supposed to be a financial instrument which holds some kind of monetary value. Accordingly, if Bitcoin were security investors would expect the funds to generate profits. However, the SEC rejects the idea of Bitcoin being security.
Brent Fields, Associate Director of SEC’s Disclosure Review and Accounting Office when expressing about Bitcoin purchasers stated, “We do not believe that current purchasers of Bitcoin are relying on the essential managerial and entrepreneurial efforts of others to produce a profit.”
If the SEC should consider Bitcoin as a security, the letter stated that Cipher technologies will have to answer a whole lot of questions concerning related regulatory issues.
The legal and investor protection issues have not been addressed by Cipher. Factors like potential manipulation in the market, custody and valuation are to be taken into consideration.
The price of the BTC according to several analysts are dependent upon the ashes of the global financial crisis. The genesis block was created in 2009. This was followed by a decade long period of expansion of the BTC and cryptocurrency economy.
It is now see that the American economy might slip towards recession. The economy softened and the BTC price seems to work with it and this instils the thought of whether Bitcoin is playing to the US economic woes.
It cannot be stated so, because the American economy did not see the kind of phenomenal growth in prices like that of the BTC. It can just be a coincidence of the recession and the birth of Bitcoin according to many. There is not enough money with the people to set aside for investment into speculative assets like the BTC.
Despite regulators repeatedly pushing back previous proposals, it is not going to be the end of the Bitcoin cycle. Bitcoin has gone through numerous market cycles and it will survive over again.