Bitcoin Weekly: ETH = securities?Price
Bitcoin started the week dipping below the 9000.0 support level, but quickly returned and showed a sustained growth throughout the whole 9000.0 - 10000.0 zone. As was expected the breakthrough of the 10000.0 resistance did not happen, though on some Asian exchanges the price showed a peak above the 10000.0 mark. Failed attempts to break the 10000.0 triggered a kind of sell-off and brought the price to the 9500.0 support. The peak of today's traded volume lies below the 9700.0 level, which points out that there are buyers, willing to buy at these levels. Weekly Bullish Trend LIne, which was established by the weekly uptrend, was broken today, which also changes the bullish pattern into more prolonged lateral movement. Such rollback will send BTCUSD pair into correctional movement. The most comfortable boundaries for the movement, which will not scare away buyers, will be 9000.0 - 10000.0. Breakthrough below the 9000.0 - 8800.0 zone will lead tot he further sell-offs. Break above the 10000.0 should be confirmed by the high volumes, and in the best scenario, high volumes should also remain above the 10000.0 level.
Forecast
We expect to see more fluctuations in the 9000.0 - 10000.0 zone during the next week. And if the volumes will be high and distribute in the upper part of the channel, we would expect one more attempt to take 10000.0 level.
Events
May 7 - Regulators, including the CFTC and the SEC, are due to meet on the 7 May to discuss the matter further. Recent WSJ report jittered the cryptocurrency ecosystem with the news that SEC and CFTC officials are about to decide whether Ethereum is securities. Making ETH securities could bring a lot of questions and boundaries to its development.
Ethereum co-founder Joseph Lubin told TheStreet this week that the team creating the platform and technology was concerned about that scenario early on, which would keep unregistered investors away:
“We spent a tremendous amount of time with lawyers in the U.S. and other countries, and are extremely comfortable that it is not a security; it never was a security”.
The bad news for the Ethereum could push traders to fix profits on ETH, partly into Bitcoins.
