BTC Bulls in the Need of ETF Approvals to Avoid Sub-$29,500

Key Insights:

• On Tuesday, BTC joined the broader market in the red for the third session, falling 1.00% to end the day at $29,956.
• Crypto regulatory chatter left BTC in the red.
• The near-term technical indicators remained bearish, signaling a return to sub-$29,000.

On Tuesday, bitcoin (BTC) fell by 1.00%. Following a 0.40% loss on Monday, BTC ended the day at $29,956. Notably, BTC ended the day at sub-$30,000 for the first time since July 6.

Bitcoin (BTC) Price Action

This morning, BTC was up 0.44% to $30,089. A mixed start to the day saw BTC fall to an early low of $29,934 before rising to a high of $30,158.

Daily Chart

The Daily Chart showed BTC/USD hover below the $30,750 – $31,250 resistance band but found support at the $30,000 psychological support level.

BTC/USD remained above the 50-day ($29,379) and 200-day ($26,702) EMAs, signaling bullish momentum over the near and longer term. Notably, the 50-day EMA continued to pull further away from the 200-day EMA and reflected bullish momentum.

Looking at the 14-Daily RSI, the 50.71 reading signaled a moderately bullish outlook and aligned with the 50-day and 200-day EMAs, supporting a move through the $30,750 – $31,250 resistance band to retarget $31,500.

4-Hourly Chart

Looking at the 4-Hourly Chart, the BTC/USD faces strong resistance at the $30,000 psychological level. BTC/USD sits below the $30,750 – $31,250 resistance band and the 50-day EMA ($30,398) but above the 200-day EMA ($29,811), sending bearish near-term but bullish longer-term signals.

Significantly, the 50-day EMA narrowed on the 200-day EMA, signaling a return to sub-$29,500. However, a move through the 50-day EMA ($30,398) would support a breakout from the $30,750 – $31,250 resistance band to target $31,500.

The 14-4H RSI reading of 44.29 indicates a bearish stance and aligns with the 50-day EMA, with selling pressure outweighing buying pressure. Significantly, the RSI signals near-term bearish momentum and a return to sub-$29,500.

G20 Crypto-Related Chatter Leaves BTC on the Back Foot

It was a busier Tuesday session. News of the Financial Stability Board (FSB) highlighting the need for uniformity and rigor weighed on investor sentiment.

This week, the FSB introduced a regulatory framework to address the potential risks that cryptos pose to financial stability. Importantly, FSB also aims to deliver a global regulatory framework that promotes the comprehensiveness and international consistency of regulatory and supervisory approaches based on the principle of ‘same activity, same risk, same regulation.’

The prospects of more rigid oversight likely dampened the mood.

US lawmaker chatter failed to provide support, despite the Republican side of the aisle targeting the SEC on Tuesday.

Ripple CEO Brad Garlinghouse shared a letter from Republican Ritchie Torres to SEC Chair Gensler.

Torres called the SEC v Ripple Court ruling the Torres Doctrine, saying the Court decision sets a clear rule that should bear the name of Judge Torres, who has brought long overdue legal clarity to the chaos of crypto regulation.

Torres also noted that,

“The tenuous legal foundation for the litigation against Coinbase has come crashing down, and rightfully so.”

The Day Ahead

It is a quiet Wednesday session, with US housing sector-related economic indicators unlikely to impact investor sentiment. However, investors should continue to monitor the crypto news wires for SEC v Ripple-related chatter and significant crypto events.

ETF chatter and Binance and Coinbase (COIN)-related news will need consideration.