Bitcoin – Is This the Millpond Before The Storm?

Bitcoin gained 0.54% on Saturday, following on from Friday’s 0.52% rise, to end the day at $6,284.5.

It’s been an unusual couple of days for Bitcoin that has moved within particularly tight ranges since Thursday morning’s tumble back to $6,300 levels, investors seemingly lost for direction as reliance on direction hones in on the SEC’s pending decisions on the 9 Bitcoin ETF applications, which has been touted as a key driver for Bitcoin and the broader market.

Throwing in the anticipated rollout of cryptomarket rules and regulations across key jurisdictions and there’s certainly just cause for the Bitcoin clan to sit on their hands, the good news for the Bitcoin bulls being the fact that there’s been no further sell-offs, with volatility sliding back to levels seen before the midweek sell-off.

Through the day, Bitcoin recovered from a start of a day intraday low $6,280.3 to $6,300 levels and a late morning intraday high $6,333.7 before steadying, with support at $6,300 seeing Bitcoin avoid $6,200 levels through the rest of the day. The moves through the day left the major support and resistance levels untested, with $6,300 continuing to be the line in the sand for the bulls and the bears in the wake of the Thursday sell-off.

The crypto news wires were on the quieter side through the day, with an almost millpond environment leading to debate over whether this is a good or bad sign. Some would say that it may well be the calm before the storm and the lack of news and lack of direction certainly suggests that a storm is brewing and it may well be in the form of rules and regulations and the SEC’s decision on the Bitcoin EFT applications, the deadline having been extended to 5^th November, now just a few weeks away.

With so much emphasis having been placed on the Bitcoin ETF applications and government influence on the broader market through rules and regulations, the G20’s planned roll out of rules and regulations within this month, the deadline previously extended from July, will be the first storm that investors will need to navigate through. The latest FSB report, on the positive side stops short of crippling the market, while the call for vigilant monitoring could have a drastic impact on an asset class adverse to interference and any form of centralization.

While vigilant monitoring may well be an issue for investors, it may ultimately be the green light that the SEC has been waiting for in order to finally begin approving Bitcoin ETFs to deliver institutional monies into the market. It’s no coincidence that the SEC has extended the deadline beyond that of the G20’s.

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At the time of writing, Bitcoin was up 0.1% to $6,333, with Bitcoin recovering from a start of a day morning low $6,318.3 to $6,333, a hold on to $6,300 levels the main even in the early hours, with the day’s major support and resistance levels left untested.

For the day ahead, holding above $6,313 through the morning would support some upside later in the day, with the first major resistance level at $6,346.37 and second major resistance level at $6,366.73 very much in play, whilst $6,400 levels may be a step too far, with Bitcoin likely to face plenty of resistance at the second major resistance level to pin Bitcoin back from more material gains.

Failure to hold above $6,313 could see Bitcoin pullback to sub-$6,300 levels to bring the first major support level at $6,292.97 into play, with the day’s second major support level at $6,259.93 in play should sentiment deteriorate across the broader market.

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This article was originally posted on FX Empire

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