Bitcoin is under pressure again, moving in a strong downward direction. Analyzing the BTC/USD pair, we can definitely say, that the fundamental background remains the main driver for the cryptocurrency market. To confirm our statement let’s take a look at the recent Bitcoin dynamics:
Bitcoin plummeted from $7150 to $6430 in just a matter of seconds - that’s how the market reacted to the negative news. As we keep pointing out - everything that happens in the financial markets is a result of a mere display of emotions.
In this particular case, the downward movement is nothing more than the market’s emotional reaction to the US Securities Commission’s (SEC) announcement to delay its decision on the CBOE application for Bitcoin ETF for the fall. Now traders will have to live with a new deadline, "abandoned" until September 30. This is the latest date when the SEC is obliged to make a final decision regarding the launch of a new exchange-traded instrument. Nevertheless, we should make one significant remark - the SEC can make its decision earlier, anytime from August 10 to September 30. For this reason, we suggest you keep your spirits up and not to give up your long positions in Bitcoin.
Positive decision of the US Securities Commission will become a significant milestone for the whole market and will determine its future direction for many years ahead. The industry keeps attracting investments because, among other things, it’s now on the verge of a massive breakthrough, which may prove to be much more dynamic than gold’s growth after the introduction of precious metals ETFs. We remind you that with the advent of such contracts, the value of gold increased 5-fold. Bitcoin has good chances to outperform this result. However, only those who can see the potential of the entire crypto sector in general, will be able to participate and benefit from this rally.
What we need to do now is to play it cool and keep our eyes on the ball. We should accept the current state of affairs - it’s a normal market situation, which only proves the fact that major market players are in the game. The thing is - the big players can’t accumulate the necessary volume to open long positions from weak movements, so they trigger an emotional turmoil in the market. Panic is the best tactics to maintain liquidity, and it’s obviously working.
The market will keep looking for another bottom for some time - the bears will probably even manage to push Bitcoin down to its previous low at $5600.
However, even keeping in mind such a scenario, we shouldn’t completely neglect the possibility of another “mooning” on the back of the CBOE acceptance. Taking all the above said, the BTC/USD below $ 7,000 should to be considered as a great opportunity to go long.