Bitcoin has thus far not been able to continue the ascent seen last week. investors and speculators alike may simply be in a holding pattern until more is determined about the regulatory environment.
After a tough start to August for digital currency owners, participants have shifted their focus to a potential decision on the VanEck and SolidX application for a bitcoin-related exchange-traded-fund.
The first date to watch is Aug. 10, which is 45 days since the Securities and Exchange Commission filed a notice on the proposal and when the time in which it would file a response runs out. However, the SEC has said it can push out this response period to 90 days “if it finds such longer period to be appropriate.”
Either way, the crypto community has it on their radar. “The ETF decision is going to be the next catalyst for the market,” said Charles Hayter, co-founder of CryptoCompare. “There’s a lot of uncertainty around the decision, but also a lot of hope.”
Hayter added that the selloff has found its feet around the $7,000 and traders are now in a “wait and see” mode.
Despite the anticipation, some pundits believe a decision in favor of an ETF won’t come until 2019. Brian Kelly, founder and CEO of BKCM LLC, an investment firm focused on digital assets, told MarketWatch in July that a decision in 2018 is unlikely.”
This could potentially keep the sector at bay until more clarity is seen on any such approvals, and opens the possibility that many currencies could continue to drift for some time to come. Of course, a sudden flight to safety or major reversal in the dollar could fuel a rally in the space, and any other bullish headlines also have the potential to nudge prices higher.
Bitcoin: Bitcoin saw a nice rally last week, although it was unable to hold it. After trading for over 7.6k, the currency took a bit of a dive and fell to under the 7k level. Prices have recovered a bit since, and the currency seems to be trying to hold the 7k level. The market is moving a bit sideways on the larger time frames, and may not see any significant moves in either direction pending the SEC decision.
Bitcoin Cash: This crypto has been primarily range-bound again this week, and seems comfortable around the $700 level. Oddly, it has thus far not been dragged higher despite higher Bitcoin prices, but that could change. Bitcoin cash is tilting lower on the larger time frames, and could be vulnerable to another move to the downside before finding a bottom.
Ethereum: This crypto continues to show little upside in recent action, and will need to overcome some key resistance before possibly moving higher. The market has been in a tight trading range for several days, and is vulnerable to a move below the key $400 level.
Ethereum Classic: This crypto has been seeing some buying interest, and in recent weeks has moved from around $15 to around $20. The currency has pulled back, however, and is currently trading just below the $18 level. Larger charts are beginning to look slightly more constructive, however.
Litecoin: This crypto has not had much to get excited about in recent weeks, and the market has done little in terms of movement. The currency has spent a lot of time between the $74 and $78 levels, and a breakdown below the recent lows could see a fresh leg lower.
Ripple: This crypto traded in a very tight range for most of the week, spending most of the time in a five cent range. Although it might seem that the currency can’t go much lower, a breakdown under the $.40 level could set the stage for fresh declines.