Bitcoin Technical Analysis: SEC Testing The Waters With Bitcoin ETNs

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Bitcoin ETFs is not yet a yes from the main US regulator, the SEC. However, as things stand, there is Bitcoin Tracker One and though it is tradable via broker’s OTC market, investors can now invest their USDs in Bitcoin. Nevertheless, technical are not that positive and still oscillating inside a descending triangle with triggers at $6,800 on the upside and $5,800—the base of our triangle to the downside. Since prices are in between, we consider taking a neutral approach.

From the News

Bitcoin Exchange Traded Funds or ETFs are yet to become a reality for US investors keen on sinking their hard-earned capital to this coveted security instrument. However according to boosting news from Bloomberg, NASDAQ Stockholm is now creating opportunities for investment through exchange traded notes or ETNs called Bitcoin Tracker One.

These ETNs are now tradable at US brokerage accounts via an Over the Counter market as a foreign debt instruments. Initially, this instrument was available for trading in Euros or Swedish Krona under the ticker symbol CXBTF.

Bitcoin Tracker One was first availed for investors at the NASDAQ Stockholm back in 2015 and as an instrument that is finding its way to US’s brokerage firms through an OTC market, cryptocurrency and Bitcoin investors would have options to trade.

Even though there is custodial risk associated with the ETN–since the firm holds investors Bitcoins, this will be covered by the annual management fees that the firm will charge investors. Aside from Bitcoin Tracker One, there is Bitcoin Investment Trust that is available for investment through an OTC platform marketed by Grayscale Investments.

Despite this, ETNs is inferior to ETFs. The latter are more liquid, widespread and would definitely spur widespread adoption igniting this boom in prices that investors are eagerly waiting on.

Bitcoin (BTC) Technical Analysis

Weekly Chart

Regardless of recent price “boom”, odds are heavy against Bitcoin buyers even from a fundamental perspective-the lack of approval from SEC is a big deal.

Now, on the technical front, sellers are pushing hard clipping buyer’s effort. As mentioned in previous Bitcoin (BTC) technical analysis, our buys are far from being active and for that to happen, we need to see gains above $6,800 and $7,000—levels which were last tested in late July before that price collapse.

In my view, taking longs now is being too optimistic and while many want to see price appreciation, we prefer taking a neutral stand until either prices dip below week ending Aug 12 and $5,800 or thrusting past $6,800—our main support line and 2018 triggers.

Daily Chart

From the chart, our main support zone stands at $5,800 and $6,000. It’s easy to see why: $5,800 and $6,000 are June and August 2018 lows and are important levels in our technical analysis.

So, going forward, we shall take a neutral as we wait for price action to trigger our buy or sell triggers. Regardless, we shall take a heavy leaning towards bears.

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

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