BTC Bears Eye Sub-$28,500 on New SEC Charges

Key Insights:

• On Monday, BTC joined the broader market in the red, falling 0.27% to end the day at $29,336.
• SEC moves against Richard Heart, Hex, Pulsex, and PulseChain, and a Curve Finance exploit weighed.
• The near-term technical indicators remained bearish, signaling a return to sub-$28,500.

On Monday, bitcoin (BTC) declined by 0.27%. Following a 0.27% fall on Sunday, BTC ended the day at $29,336. Significantly, BTC came up short of $30,000 for the seventh consecutive session.

Bitcoin (BTC) Price Action

This morning, BTC was up 0.18% to $29,389. A mixed start to the day saw BTC fall to an early low of $29,318 before steadying.

Daily Chart

The Daily Chart showed BTC/USD sitting below the $30,750 – $31,250 resistance band. BTC also remained below the 50-day EMA ($29,444) while holding above the 200-day EMA ($27,050), sending bearish near-term but bullish longer-term price signals. Notably, the 50-day EMA narrowed on the 200-day EMA, supporting further losses.

Looking at the 14-Daily RSI, the 44.48 reading reflects bearish sentiment. The RSI signals a BTC fall to sub-$28,500 to bring the $27,500 – $26,850 support band into view. However, a move through the 50-day EMA ($29,444) would give the bulls a run at $30,000 and the $30,750 – $31,250 resistance band.

4-Hourly Chart

Looking at the 4-Hourly Chart, BTC remains below the $30,750 – $31,250 resistance band and the 50-day ($29,514) and 200-day ($29,687) EMAs, signaling bearish price momentum.

Significantly, the 50-day EMA pulled further back from the 200-day EMA after the bearish cross, signaling a return to sub-$28,500. However, a BTC move through the 50-day ($29,514) and 200-day ($29,687) EMAs would support a run at the $30,750 – $31,250 resistance band.

The 14-4H RSI reading of 48.00 indicates a bearish stance, with selling pressure outweighing buying pressure. Significantly, the RSI aligns with the 50-day EMA, signaling near-term bearish momentum and a return to sub-$28,500.

SEC Activity and Curve Finance Exploit News Leaves BTC in the Red

It was a busy Monday, with the crypto news wires drawing interest as investors await updates on the Spot BTC ETF applications.

The SEC resumed its regulation by enforcement policy in the wake of the Judge Torres ruling, by charging Peter Heart, Hex, PulseChain, and PulseX for the unregistered offering and sale of crypto asset securities to retail investors and defrauded investors by using investor monies to fund his lavish lifestyle, among other charges.

News of a Curve Finance exploit was also bearish, with the loss of investor money likely to draw the wrath of the SEC and the US Democrats.

The latest SEC move and the Curve Finance came just days after SEC Chair Gary Gensler reminded the markets of his view on the digital asset space. Illegal activity in the mainstream digital asset space could give the SEC reasons to decline the spot BTC ETF applications in the interest of investor protection.

The Day Ahead

US economic indicators are on the light side this afternoon. The ISM Manufacturing PMI numbers for July will draw interest. Investors should consider the numbers and reasons for the Fed to put a September Fed rate hike firmly on the table.

However, beyond the economic calendar, the crypto news wires will continue to influence. Investors should monitor SEC v Ripple chatter, ETF updates, and Binance and Coinbase (COIN)-related news.