Bitcoin price bounced backed slightly on Friday morning amid a market-wide crypto recovery, settling above the $6,500 price level. A reversal is likely the result of a decision handed down yesterday by the Securities and Exchange Commission (SEC), which ruled that Ethereum is not a security. The price of Ethereum also shot up by 10% in response to the SEC decision.
Previously, investors had been put off by reports in May that regulators were debating whether Ethereum, the world’s second-largest cryptocurrency by market capitalization, could be considered an equity. Even before that, the crypto market had been negatively affected by comments made by SEC chief Jay Clayton in April, when he stated that “every ICO I’ve seen is a security.” Fortunately for Bitcoin investors, Clayton did note that he did not consider Bitcoin an equity offering.
BTC/USD On Bullish Run
The latest price recovery puts Bitcoin on another bullish run. The SEC decision yesterday puts Bitcoin back in bull territory with solid buying interest from investors. A major support has been established at $6,450, and a bullish trend line began to form at that price point. Another bullish trend formed around $6,550, testing its earlier resistance of $6,650. A break above that could see BTC/USD close near $6,800. A subsequent upward run would pave the way for $7,000 in the short term.
Source: Tradingview
Looking at the chart, Bitcoin is currently trading in the $6,500-$6,600 price range. There may be a slight downward action toward the support as indicated by the MACD. The RSI indicator shows that Bitcoin is being oversold, so it’s likely an increasing buying pressure could propel BTC/USD further up.
Looking at the Technical Indicators:
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Hourly MACD — Bearish signal
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Hourly RSI — Bitcoin is in bullish zone
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Major Resistance Level — $6,650
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Major Support Level — $6,450
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