FX.co ★ Technical Analysis of BTC/USD for March 13, 2023

Crypto Industry News:

The U.S. Securities and Exchange Commission yesterday rejected VanEck's application to create a Bitcoin spot exchange product (ETP), Reuters reported.

The SEC has fundamentally rejected a change that would allow the company to establish trust in Bitcoin. Commissioners Mark Uyeda and Hester Peirce immediately issued a statement criticizing the Commission's decision not to approve the listing and trading of the VanEck product.

The SEC opined that because there is no primary regulated market, VanEck does not have a comprehensive supervisory sharing agreement with a regulated market of significant size related to spot bitcoin.

According to the commissioners, the SEC has not previously required any link between the spot and futures markets for other commodity-based ETPs:

"It is also clear that the Commission uses an extremely onerous definition of the word 'significant' in its analysis of Bitcoin ETP spot applications," the letter reads.

They added that the SEC is legally required to explain changes to its policy for approving commodity-based ETPs.

VanEck has a financial product related to Bitcoin futures. In 2017, the company began seeking approval for the product. The SEC has been delaying for months before making a decision on the company's current, third application for an ETP spot.

Technical Market Outlook:

The BTC/USD pair has made a dynamic and aggressive reversal from the yearly low located at the level of $19,572 and is currently testing the 50 DMA seen at $22,059. The next target for bulls is seen at the level of $22,755, because this is the key short-term technical resistance for bulls. The momentum on the daily time frame chart remains positive, which supports the short-term bullish outlook for BTC.

Weekly Pivot Points:

WR3 - $24,010

WR2 - $23,176

WR1 - $22,860

Weekly Pivot - $22,341

WS1 - $21,967

WS2 - $21,506

WS3 - $20,672

Trading Outlook:

Despite the recent rally, the down trend on the H4, Daily and Weekly time frames continues without any indication of a possible trend termination or reversal. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The gamechanging level for bulls is located at $25,442 and it must be clearly violated for a valid breakout in the longer term.