FX.co ★ BTC analysis for 02.27.2020 -Watch for potential downside on the BTC due to strong downside moemntum and potential for test of the Pitchfork Median line at $7.700

Industry news:

The American Securities and Exchange Commission (SEC) has rejected yet another Bitcoin ETF application. This time, Wilshire Phoenix, a New York-based investment firm, bore the brunt of the agency's ruling.

SEC Commissioner Hester Peirce believes the dismissal is unfounded and "evinces a stubborn stodginess in the face of innovation."

SEC Sinks Another Bitcoin ETF

The Commission cited crypto's vulnerabilities to market manipulation as a prime reason in its latest rejection.

Wilshire Phoenix, the applicant in question, submitted its proposal with NYSE Arca in June 2019. They refiled again in October so as to include a minor amendment, and the Commission postponed their ruling the following month.

Technical analysis:

BTC has been trading downwards as I expected yesterday. The rejection of the resistance line was the key for the recent downside movement together with the lack of demand around $9.440.

I found bear flag on the 4H time-frame and my advice is to watch for selling opportunities and potential rotation down towards the $8.261 and $7.695 (Pitchfork Median line).

MACD oscillator is showing increasing downside momentum, which adds confirmation for further downside.

Major resistance is set at the price of $9.300

Support levels are seen at the price of $8.261 and $7.695