Bitcoin Price Defends Key Support Despite ETF Rejections
Bitcoin is teasing a minor rally today, having defended key support at $6,230 despite a string of bad news. At press time, the leading cryptocurrency is changing hands at $6,400 on Coinbase – down 3 percent on a 24-hour basis. Meanwhile, 94 out of the top 100 cryptocurrencies by market capitalization are flashing red, according to CoinMarketCap. The risk-off tone in the cryptocurrency markets is likely associated with the US Securities Exchange Commission's (SEC) rejection of several proposals for bitcoin exchange-traded funds (ETFs) on Wednesday.
Further, it was reported earlier today that China, one of the biggest sources of demand for cryptocurrencies, is planning to block access to more than 100 overseas crypto exchanges.
Still, BTC has avoided a break below the rising trendline and is holding well above the support at $6,230 (Aug. 20 low), as seen in the chart below, forcing us to consider the possibility of a rally.