Bitcoin Shows Signs of Recovery as SEC Considers Bitcoin ETFs
Bitcoin made a slight recovery on Thursday, responding to comments made by Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), regarding bitcoin exchange-traded-funds (ETFs). Gensler revealed that the commission is currently reviewing several applications from firms interested in launching bitcoin ETFs.
Bitcoin’s Bounce Back
After a two-day losing streak, bitcoin’s price reached a high of $28,566.75 following Gensler’s comments. This rebound came after hitting a low of $28,174.25 during Wednesday’s trading session. The recent increase in price has also pushed bitcoin back above the $28,200 support level.
The 14-day relative strength index (RSI) played a role in this bounce back, as it jumped at its own support level of 63.00. The RSI is currently at 64.35, just below the next resistance level at 65.00. Breaking through this resistance will be crucial for further bullish momentum.
Ethereum Faces Continued Decline
In contrast to bitcoin, Ethereum experienced its third consecutive session of decline as it hit a long-term floor. After reaching a high of $1,580.26 on Wednesday, ETH/USD dropped to an intraday low of $1,543.59 today, nearing a support point at $1,540.
The downward trend of the 10-day moving average and its cross with the 25-day trend line indicate bearish sentiment for Ethereum. In the past, breaking below this support level has led to further declines, sometimes resulting in seven-month lows for the cryptocurrency.
Hot Take: Bitcoin Recovers Amidst SEC’s Review of Bitcoin ETF Applications
Bitcoin managed to bounce back from its recent losses after SEC Chair Gary Gensler revealed that the commission is currently reviewing applications for bitcoin exchange-traded funds (ETFs). This news sparked a positive response in the market, pushing bitcoin’s price higher. However, Ethereum continues to face a downward trend as it approaches a key support level. The coming days will determine whether bitcoin can break through its resistance level and sustain its recovery, while Ethereum will need to find support to avoid further declines.
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