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SEC Crackdown and the Future of Crypto

Are you aware of the recent crackdown by the SEC on major cryptocurrency exchanges, Binance US and Coinbase? Surprisingly, savvy Bitcoin traders seem unfazed, as options-based implied volatility metrics indicate. It appears that the lawsuits were anticipated and already factored into the market. Implied volatility reflects investors’ expectations of price turbulence, but little evidence of heightened concern exists. Bitcoin’s implied volatility has increased slightly since the SEC news, mainly in short-duration options. The impact seems more significant on alternative cryptocurrencies rather than Bitcoin and Ethereum. While the SEC’s actions have affected certain altcoins, bitcoin has experienced relatively stable daily price moves. Stay vigilant and watch market developments as you navigate the exciting world of forex trading!

US DOLLAR – Daily Timeframe

The rejection from the trendline resistance has been clearly established, but we’re yet to see the price trade clear of the pivot zone. My sentiment is bearish based on the following factors;

  • Trendline resistance
  • Pivot zone acting as supply
  • The moving average array is bearish

Analyst’s Expectations:

  • Direction: Bearish
  • Target: 103.252
  • Invalidation: 104.249

BTCUSD – Daily Timeframe

BTCUSD has been rejected from the pivot zone; however, more convincing is needed. Considering the confluence from the 200-Day moving average support, bullish moving average array, as well as the possibility of the RSI being oversold, I will patiently wait for the price to retest the pivot zone once more and then take a trigger from the lower timeframe change of structure.

Analyst’s Expectations:

  • Direction: Bullish
  • Target: 27618.24
  • Invalidation: 24068.47

ETHUSD – Weekly Timeframe

Ethereum requires a bit of patience because the price is currently trading within a wedge pattern, and there hasn’t been a breakout of the wedge yet to signal a clear direction. However, I have a few factors pointing to the possibility of bullish price action in the nearest future, including;

  • Support trendline
  • Drop-base-rally demand zone
  • 50-Day moving average support
  • 200-Day moving average support

Analyst’s Expectations:

  • Direction: Bullish
  • Target: 1996.36
  • Invalidation: 1341.44

XRPUSD – Daily Timeframe

XRPUSD is trading within a rising wedge with the possibility of a retest of the trendline support. The moving average array also looks bullish, and the 50, 100, and 200 Day moving averages provided ample support to confirm bullish sentiment.

Analyst’s Expectations:

  • Direction: Bullish
  • Target: 0.55081
  • Invalidation: 0.43797


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