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Bitcoin (BTC) dipped below $41,700 following the Wall Street opening on December 15, as the price action faced renewed selling pressure.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin reacts to SEC’s Coinbase rejection
Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD fell more than $1,300 or 3.2% during the day.
The leading cryptocurrency, having recently recovered from abrupt volatility the previous day, struggled to maintain its position at $43,000 as Bitcoin bulls were unable to achieve further upward movement.
The decline in BTC’s price coincided with the announcement that the United States Securities and Exchange Commission (SEC) had denied a request from major exchange Coinbase to amend the regulations governing cryptocurrency.
“Today, the Commission denied a Petition for Rulemaking filed on behalf of Coinbase Global, Inc.,” stated SEC Chair Gary Gensler.
“I was pleased to support the Commission’s decision for three reasons. First, existing laws and regulations apply to the crypto securities markets. Second, the SEC addresses the crypto securities markets through rulemaking as well. Third, it is important to maintain Commission discretion in setting its own rulemaking priorities.”
The SEC is already a significant factor in the current cryptocurrency market narrative due to expectations that it will approve the first U.S. Bitcoin spot price exchange-traded funds (ETFs) in early 2024.
In a Bloomberg interview on December 13, Gensler acknowledged the recent legal actions related to the agency’s repeated denials of Bitcoin spot ETF applications.
The SEC, he noted, “acts according to our authorities and how courts interpret our authorities, and that’s what we’ll do here as well.”
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Examining the latest order book setup, well-known trader Skew pointed out that bid support is strengthening at $41,000.
“Increasing bid depth around $41K, will be interesting from here. Active supply around $44K,” part of a post on X (formerly Twitter) remarked.
BTC/USDT order book data for Binance. Source: Skew/X
Further analysis emphasized that low-timeframe exponential moving averages, or EMAs, are now back in focus.
BTC price bulls face Fibonacci challenge
Looking at the broader picture, Keith Alan, co-founder of trading resource Material Indicators, highlighted an ongoing effort to convert a crucial weekly level back to support.
Related: US dollar hits 4-month low as Bitcoin trader predicts 10% drop to come
This involved the 0.5 Fibonacci retracement line near $42,500, which is one of several significant obstacles to surpass on the path toward the all-time high of $69,000.
Material Indicators also noted that large-volume traders were increasing their buying activity at the time of writing.
“Mega Whales are buying, and trying to reclaim $42k,” part of commentary on X summarized.
BTC/USDT liquidity heatmap for Binance. Source: Material Indicators/X
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
