Huge price upswing sees bitcoin (BTC) increase 9.5% on Wednesday

Huge price upswing sees bitcoin (BTC) increase 9.5% on Wednesday

Table of Contents

The crypto market continues to surprise, as on the day that news came out on the SEC investigation of ethereum, both $BTC, and $ETH completely ignored this bearish dynamic, and made big gains of 9.5% and 11% respectively.

Bearish news - $BTC rockets up

With huge outflows still taking place from the Grayscale Spot Bitcoin ETF (GBTC), and Blackrock (IBIT) and the other 8 ETFs languishing for the third straight day of weak inflows, bitcoin decided on a very solid bounce, which took it all the way back up as far as $68,000 during the day.

This wasn’t the only bearish factor on Wednesday. News leaked out that the SEC is investigating the Ethereum Foundation. With the Ethereum ETF decision looming into view, the SEC has probably decided to go on a preemptive attack, and thus scuttle the ETF decision.

It turns out that subpoenas have been issued to various companies related to the Ethereum Foundation, and in this manner, with such an investigation under way, the SEC will be able to deny the spot ETF, and not have the embarrassment of being taken to court and lose its case over not having approved it.

A 9.5% $BTC price increase for the day

With this news exploding across social media in the background, it would have been imagined that this would have been all the $BTC price needed in order to sink further into a developing correction.

None of it. Not long after the ethereum/SEC news broke, $BTC went on a rampage to the upside. From an opening price of $61,900, which then fell as low as $60,800, the $BTC price rocketed skywards to end the day at $67,800.

Source: Coingecko/Trading View

As can be seen in the short term 4-hour time frame chart above, $BTC broke through the trend line, which lay along the top of the W pattern. A nice wick down confirmed the move. The measured move for this was met at $67,000, and then $BTC went even further to $68,000.

The 0.618 could be a level of support now, which also coincides with a local level of support at $66,000.

$BTC still in uptrend

Source: Coingecko/Trading View

Zooming further out into the daily time frame, it can be seen that $BTC made another touch of the trend line that it has been respecting since early February. Perhaps some chop sideways could take place for $BTC over the coming days. That said, the trend is still up, so $BTC may start heading back to the last all-time high at $73,650 before long. 

The market is becoming very volatile so traders beware. Both buying and selling at this juncture are risky actions. Trade with caution.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Investment Disclaimer
Related Topics: 

You may like