Amid news of ETF proposal rejection, the price of Bitcoin has continued its strong bearish movements. Yesterday’s early price action proved to be just a brief gain with traders who took short positions around the hourly 100EMA making a significant profit. The outlook for Bitcoin price has been strongly bearish since price moved below the $7200 mark. The $6850 level couldn’t hold up after multiple tests, and the ETF news proved too much for the bulls and buyers to hold price above this level.

The approval of an ETF would have had a huge positive impact on price action, as it would serve to open a gateway for institutional investors to enter the market. Concerning technical indicators, the MACD is forming a centreline crossover to the downside, a bearish signal which is consistent with price action. RSI is approaching oversold territory, but with momentum strongly bearish, it is questionable whether this will have much effect. Any rise now would likely be met by resistance at $6850.

Bitcoin Daily Chart

Traders who took short positions yesterday at the 100EMA profited handsomely. There was some luck involved with the bearish ETF news, but 100EMA also looked likely to be a significant dynamic resistance point. Price currently has some support at the $6450 level with buyers coming in but whether it can hold given the recent bloodbath across the markets is another question.

Key Takeaways:

  • The market moved violently to the downside after news of the rejection of an ETF
  • Traders who took short positions at 100EMA yesterday profited significantly
  • Centerline crossover to the downside occurred in the MACD which is consistent with price action.
  • RSI approaching oversold territory on the daily but unlikely to have much effect amid this strong downward movement
  • Price is currently getting some support at the $6450 level
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