close icon

Bitcoin ETF Rejected by the SEC? No Problem!

Last Friday, March 10th, the SEC rejected a proposed change in its rules that would have allowed the Winklevoss brothers to create the first Bitcoin ETF. Following the decision, the price of the cryptocurrency fell over 20%, from nearly $1290 to as low as $975 in a matter of minutes. And while the speed and depth of the move were spectacular, the selloff itself was hardly a surprise. In “Bitcoin Elliott Wave Outlook Ahead of the SEC”, an ARTICLE published several hours before the SEC announcement, the following 4-hour chart of BTCUSD helped us prepare for what was going to happen.
bitcoin etf price chart
As visible, we anticipated a three-wave decline to at least $1100 before the uptrend could resume. The reason for our short-term bearishness ahead of the SEC was the Elliott Wave Principle, which postulates that every impulse is followed by a three-wave correction in the opposite direction. Since there was an easily recognizable five-wave sequence between $751 and $1350, we thought it was time for the bulls to catch a break. Besides, the relative strength index was showing the typical bearish divergence between the tops of waves (iii) and (v), further supporting the negative outlook. So, according to the Wave principle, there was no reason to load up on bitcoins ahead of SEC. The updated chart below shows how things went.
bitcoin updated chart
Well, the SEC-inspired Bitcoin crash now fits perfectly in the position of wave “a” of 2. The following recovery to $1260 should be wave “b” and the current decline to $944 so far should be labeled as wave “c”. It is also interesting to notice that despite the panic, the bears seem to be running out of power near the 61.8% Fibonacci level, where second waves often terminate. According to the Wave Principle, the 5-3 wave cycle is likely to produce another phenomenal rally towards a new all-time high.

Less than ten days after the SEC’s rejection of the first Bitcoin ETF, the price of the cryptocurrency lies below $1000. However, if this is the correct count, reaching a new all-time high is just a matter of time. In fact, our long-term outlook suggests the price of the digital currency is going much, much higher. No Bitcoin ETF? No problem.*

*This article was first published on March 16th. It has been updated in response to Bitcoin’s recent behavior.



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Four Days Ahead of Bitcoin’s “Red Sunday”

Bitcoin is plunging yet again. Following a small recovery from $7027 to $7791 in the first week of the month, BTCUSD just breached the support of $7200 and still seems to be in a downward spiral from its December 2017 high of $19 666. But let’s ignore the bubble-or-not-a-bubble talk for a moment and concentrate…

Read More »

EOS Crypto Bulls Ready for a New Record High

In just two short weeks, EOS – the fifth largest cryptocurrency by market capitalization – fell from an all-time high of $23.03 to as low as $12.05, losing almost 48% of its value. As the price of EOS is approaching the $15 mark now, traders are wondering what to expect from now on – more weakness…

Read More »

Bitcoin: UpBit Fraud Scandal Just a Catalyst

After the price of Bitcoin rose twenty-fold in 2017, the majority of crypto investors were expecting even bigger gains in 2018 as the digital currency was finally entering the mainstream. Alas, so far that is not the case as BTCUSD plunged by roughly 70% in just a month and a half. But instead of going…

Read More »

Dash Traders Setting Their Sights on $550 a Coin

In less than four months, between December 20th 2017 and April 6th 2018, Dashcoin fell from an all-time high of $1550 to as low as $287, losing over 81% in market value. Fortunately, the month of April has been more generous, allowing the bulls to take a breather and lift Dash prices to $544 by…

Read More »

Ripple Bulls Finally Ready to Conquer $1 Again?

The cryptocurrency crash of the first three months of 2018 did not spare anyone. Most virtual currencies lost between 60% and 80% of their market capitalization and Ripple, which was briefly the second largest after Bitcoin, plunged as well. Between January 4th and April 1st, XRPUSD fell from its all-time high of $3.3170 to as…

Read More »

Bitcoin Crashes. Is the SEC to Blame?

This looks like another terrifying week Bitcoin investors will have to suffer through. The price of the biggest cryptocurrency has been in a tailspin in the last couple of days. After the bulls could not breach the resistance of $11 780 on Monday, a sharp selloff dragged BTCUSD to as low as $9 450 by…

Read More »

Litecoin Bulls Searching for Fibonacci Support

Litecoin, the fifth largest cryptocurrency by market cap, reached its all-time high in mid-December, 2017, accompanied by most other virtual tokens, including the biggest one in the face of Bitcoin. The following crash, which erased almost 70% of Bitcoin’s market cap, wiped out over 71% of Litecoin’s capitalization after the price dropped from over $370…

Read More »

More analyses