Bitcoin Price Holds Steady as Signs of Bullish Reversal Emerge
Bitcoin’s price was little changed Thursday, though the technical charts suggest that a bullish reversal is in the works following a successful defense of a key psychological threshold.
The bitcoin price is currently trading at $6,350 on Bitfinex, having gained 1.3% during the session. Compared with 24 hours ago, BTC is virtually unchanged.
At current values, bitcoin has a total market capitalization of $109.3 billion, according to CoinMarketCap. That represents more than 53% of the entire market value for cryptocurrencies.
Bitcoin is trading comfortably above $6,000 after briefly piercing below that level earlier in the week. On Wednesday, the leading digital currency returned above $6,600, a sign that the short-sellers were running out of steam.
With the latest recovery, BTC has crossed the 50-period moving average, with the bulls eyeing yesterday’s high as a short-term target. A return above $6,600 could set the tone for a bigger breakout toward $7,000 in the near future. However, as Hacked previously reported, investors’ psychology remains severely damaged after the latest rout, which means the bulls aren’t out the woods yet.
According to the Relative Strength Index (RSI), bitcoin is gaining momentum after its recent brush with oversold levels.
Bitcoin ETF: More Problems Than Its Worth?
Last week, the U.S. Securities and Exchange Commission (SEC) announced it would delay a ruling on a keenly awaited bitcoin exchange-traded fund (ETF) – a non-decision that seems to have sparked the latest selloff in cryptocurrencies. (As we’ve reported all week, the selloff seems to have morphed into an ICO cash-out, with those of us still invested in the market diverting our assets into bitcoin.)
According to crypto pioneer Nick Szabo, bitcoin ETFs may not be the ‘holy grail’ investors have been waiting for; instead, they could lower the barrier to entry for “dumb money” to flood the market.
“I for one am not lobbying for an ETF or for Wall Street-managed money in general,” Szabo tweeted earlier this week. “It might cause more problems than it’s worth. The recent sell-off by dumb money has or soon will deprecate many opinionated know-nothings in this space. We don’t need new ones to take their place.”
Several researchers have linked bitcoin futures to increased market manipulation and volatility, a sign that institutional money isn’t what it’s cracked up to be. An ETF, in Szabo’s view, could invite many of the same problems. (Prior to the launch of bitcoin futures, “shorting” the digital currency was virtually impossible.)
Total assets under management held in ETFs crossed the $5 trillion mark earlier this year and is expected to grow steadily into next decade and beyond.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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