Regardless of the overall bearish sentiment and the SEC weighing in heavily against Bitcoin, bulls seem to be stable and recovering. It’s up five percent and reducing their weekly losses to eight percent as buyers reject prices below $6,000-the upper limit of our support zone. Considering the past two trends, we still hold a bearish position and until we see thrusts above $6,800 and $7,000 to the upside, we recommend shorts on high more so once there is a convincing break below $5,800.
From the News Bitmain, the world’s largest ASIC manufacturer plans on holding an initial public offering, IPO in the coming months. As it prepares to secure funding, details are emerging that the ASIC marker leader and the company behind one of the largest Bitcoin and Bitcoin Cash mining pools holds more than one million Bitcoin Cash estimated at $650 million at current spot prices and $1 billion in acquisition price by end of Q1 2018. Contrary to our expectation, Bitmain owns about 22,000 Bitcoins. At current prices, their Bitcoin holdings stand at $140 million with an acquisition price marked up to $150 million. However, recent statistics shows that their Bitcoin holding is down to 6,700 BTC following their steady liquidation since the beginning of the year. The market is waiting for solid fundamentals before pouncing and riding with the resulting trend. That solid news has to be approval of the Bitcoin ETF by the SEC. Lest we forget, the Bitcoin and crypto market often pans out in similar fashion as other securities. News or even rumors of “certain” approval would definitely jump start reversal of last week’s losses. On the reverse side, a rejection would have an opposite effect dumping prices to new lows. However, let’s get this straight: even if the SEC rejects the VanEck Bitcoin ETF, more ETFs will be up contending for approval and it will just be a matter of time before we get a market propelling nod. Bitcoin (BTC) Technical Analysis Weekly Chart