BTC Eyes Sub-$30,000 as SEC v Ripple Ruling Creates Uncertainty

Key Insights:

• On Friday, BTC slid by 3.57% to end the day at $30,408.
• A broad-based crypto market pullback left BTC at sub-$30,500 as investors considered the details of the SEC v Ripple Court ruling.
• The near-term technical indicators turned bearish, signaling a return to sub-$30,000.

On Friday, bitcoin (BTC) slid by 3.57%. Reversing a 3.44% gain from Thursday, BTC ended the day at $30,408. Significantly, support at $30,000 limited the downside.

Bitcoin (BTC) Price Action

This morning, BTC was down 0.03% to $30,400. A mixed start to the day saw BTC rise to an early high of $30,502 before falling to a low of $30,337.

Daily Chart

The Daily Chart showed BTC/USD fall through the $30,750 – $31,250 resistance band to test support at $30,000 as investors considered the details of the SEC v Ripple Court ruling.

However, BTC/USD remained above the 50-day ($29,241) and 200-day ($26,560) EMAs, signaling bullish momentum over the near and long term.

Notably, the 50-day EMA continued to pull away from the 200-day EMA and reflected bullish momentum.

Looking at the 14-Daily RSI, the 54.03 reading signaled a 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 $32,000.

4-Hourly Chart

Looking at the 4-Hourly Chart, the BTC/USD faces strong resistance at the $30,500 psychological level. BTC/USD sits below the $30,750 – $31,250 resistance band and the 50-day EMA ($30,675) but above the 200-day EMA ($29,688), 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-$30,000. However, a move through the 50-day EMA ($30,675) would support a breakout from the $30,750 – $31,250 resistance band to target $32,000.

The 14-4H RSI reading of 43.64 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-$30,000.

SEC Appeal Jitters Left BTC and the Broader Market in the Red

On Friday, silence over whether the SEC will appeal the SEC v Ripple Court rulings weighed on investor sentiment. The SEC did not respond to appeal-related questions, reportedly not commenting to appeal questions.

Significantly, the SEC v Ripple case will proceed after the Court ruling on XRP sales to institutional clients.

While the SEC will likely face scrutiny over the case, lawmakers have yet to voice the need to review the SEC mandate and consider the introduction of an alternative regulatory authority to oversee the digital asset space.

The US administration remains crypto-adverse, which could allow the SEC to continue its regulation by enforcement mantra. Smaller players may roll over to SEC charges and water down the ramifications of the SEC v Ripple case rulings.

The Day Ahead

It is a quiet Saturday session, with no external market forces to impact investor sentiment. However, investors should monitor the crypto news wires for SEC v Ripple-related chatter and significant crypto events.

After the SEC v Ripple ruling, investors should track ETF chatter, with Binance and Coinbase (COIN)-related news likely to also be focal points.

Notably, the SEC could retaliate to the SEC v Ripple Court ruling by declining the BTC – ETF applications.