The price of Bitcoin once again started to slip back towards $1,000 after going up by over $60 in the course of a day on Tuesday thanks to a stronger buying interest. But unlike two days ago, the market has now turned to the other side and is pre-dominantly pro-sell – a mood that can take another toll on the price if it prevails.
In other news, India’s Minister of Finance, Arjun Ram Meghwal, warned India’s Parliament this Tuesday about how the illicit use of Bitcoins can attract the provisions of India’s Anti-Money Laundering Law, local media report. The minister said this in a written reply nearly two months after the Reserve Bank of India publicly stated that they haven’t authorized any entity to deal with Bitcoin or offer any services related to it.
Namely, Megwhal echoed the RBI’s words by saying that any virtual currency was not an authorized payment medium, but also added that the absence of “counter parties” in using virtual currencies like Bitcoin for illicit activities in an anonymous environment could subject any user to involuntary breaches of India’s counter terrorism and Anti-Money Laundering Laws.
Sellers Pick up Pace
In the past 48 hours since our last update, the price of Bitcoin went through several changes as the market swung in and out of a selling mood, as it had in the previous days. The highest point was reached yesterday, when the price of 1BTC peaked up to $1,067.17, while the lowest point of $1,013.44 was hit today.
Volume-wise, there haven’t been many changes when compared to last week, as the trading volume is still closely to where it was these past couple of days, or $333,791,000, to be more precise. The market cap, on the other hand, is at $16.5 billion.
Our 1-hour chart shows that 10 out of 12 oscillators and 9 out of 12 moving averages are in the sell-zone, making the overall signal very pro-sell. The SMA 100 has dropped below the SMA 200 on both short-term and long-term charts, so the downside path is where the least resistance is. However, the Williams R% is sending an oversold signal, so there might be a break from selling in the making. As always, keep your eyes close on the market, as there might be another swing coming soon.
SEC Denies Second Bitcoin ETF
The US Securities and Exchange Commission (SEC) have rejected another proposal for a Bitcoin Exchange Trade Fund (ETF) after the Winklevoss’ twins own proposal was denied less than a month ago. But this time, the SEC rejected the proposal of SolidX Bitcoin Trust, after previously delaying the decision to rule on the proposal in January.
The commission once again voiced the same concerns about market manipulations given to the Winklevoss ETF as the reason for rejecting the proposal. As we talked about in our previous update, the SEC denied that application because the proposal was inconsistent with the Exchange Act (section 6b) which stated that the exchange had to be set up in such a way as to prevent manipulative activities to protect the public interest and investors.
The SolidX Bitcoin Trust was supposed to be an exchange trade fund without an active management that would have allowed investors to hold as little 0.1BTC, while any ETF approval is still seen as a way to add legitimacy to Bitcoins and introduce new money into the ecosystem while also boosting the price further. However, with two down, there’s only the Grayscale Partners ETF to go, but it’s hard not to feel skeptical about it this time.