Bitcoin Price Analysis: BTC/USD Recovers After SEC Clarification

Bitcoin Price recovered approximately 6 percent after US Securities and Exchange Commission (SEC) Clarified that Bitcoin and Ethereum are not securities under the laws of the US. However, BTC is still in downtrend and remained mostly bearish this week.

SEC Clarification

At the Yahoo Finance All Markets Summit, William Hinman Director, Division of Corporation Finance at SEC, said that Ether and Bitcoin, are not securities as these cryptocurrencies do not give benefit to a single organization or a company.

However, BTC, Ether, and other major cryptocurrencies in the market are in the downward trend, and the market is expected to continue to fall to the $250 billion mark before a mid-term recovery starts.

The statement from the regulator SEC has allowed the cryptocurrency market to rebound slightly, which was having a freefall, and the short-term stability that SEC has brought to the market is expected to play a key role in the mid-term price movement of Bitcoin.

The speech of Hinman  is important and necessary because it has officially SEC provided the clarity on the nature of Bitcoin in a public forum. The investors were looking to the regulator to spark positive movement.

Some analysts have a view that the SEC has offered clarity on the two cryptocurrencies to prevent the cryptocurrency industry and blockchain sector of the US from falling behind other leading markets.

Bitcoin Price Chart (BTC/USD)

Bitcoin had fallen to the level of $6100 from $13,860 at the start of the year, but recovered almost $500 points after SEC statement. As mentioned earlier in the previous article, BTC/USD is having support at the level of 6335. If BTC sustains above this level, it can go to the level of $7,000. However, if BTC falls below $6100, the crypto can fall further to the level of $5000. BTC seems to have made a temporary low at $6,100, but the investors should keep an eye that it sustains above the support level.

As mentioned previously, the analysts in the cryptocurrency sector had agreed that the next bull rally or up cycle for bitcoin will take less time to initiate, and expects it in the third quarter of 2018. The positive news from the regulator has given the investors some relief, but BTC has to sustain at this level.