Bitcoin price may have surged over the last couple of days, but today we see that bitcoin price has started falling again with the cryptocurrency trading at 3 per cent lower than its previous close. The price surge did not last long and the gains have been quickly reversed and the prices are back in the range which has been dominating the markets over the last 2-3 months.
The main news for the market over the last 24 hours has been the fact that the SEC has rejected the applications of some more ETFs yesterday which is in continuation of the rejections that other ETFs have had over the last few weeks. We have seen a slew of application for BTC and other crypto based ETFs and it is indeed a surprise that all of them have been rejected over the last few weeks, though the reasons seem to be different for different rejections.
There has not been much clarity in this aspect but it seems that many of the retail traders have become immune to such news. When the first few ETF application were rejected, the impact on the market was much larger as the traders and the investors had viewed it as a setback to the market but over time, the traders seem to have come to the conclusion that the market is not yet mature enough to accept ETFs at this point of time and the later rejections were quite expected as far as the market is concerned. That is why we have not seen much volatility in the prices post the rejections for this time though we believe that the development of this market to accept ETFs is only a matter of time.
The ETH prices have also crashed lower over the last few days and they continue to trade well below the $300 region as the traders and the investors seem to have lost the enthusiasm for this market. Sometime back, the ETH market was expected to do better than the BTC markets, considering that the fundamentals were stronger but that has not been the case so far. After a sharp upside move above the $295, ETH faced sellers against the US Dollar. The ETH/USD pair topped near the $300-301 zone and later it started a downside move. The price declined sharply and broke many supports near the $290 and $280 levels. There was even a break below the $268 low and sellers pushed the price below the $265 level. It traded as low as $259.17 and later the price started an upside correction.
There was a recovery above the $265 level and the 23.6% Fib retracement level of the last decline from the $301 high to $259 low. At the moment, the price is trading near an important bearish trend line with resistance at $273 on the hourly chart. A close above the $275 level could push the price towards the $280 and $282 levels. Moreover, the 50% Fib retracement level of the last decline from the $301 high to $259 low is also near $280. Therefore, any further gains above the $275 level could face barriers near the $280 and $282 levels.