Following a Flurry of News, Bitcoin Touches $3,700

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Following a Flurry of News, Bitcoin Touches $3,700

Following a Flurry of News, Bitcoin Touches $3,700Bitcoin was on track to close the second trading week of February floating near $3,600 after a series of news reports boosted trading close to $3,700. Traders expecting a straight rally towards $4,000 were mildly disappointed on February 8 as BTC/USD receded and trading volume stabilized, but an overall positive sentiment was noticeable by the end of the week.

SEC Weighs in on Cryptocurrencies

Early trading in the Asian markets provided a slight boost to Bitcoin and other digital currencies, but trading volume spiked even more after a Friday interview with an official from the United States Securities and Exchange Commission. One of the topics of the interview was the status of cryptocurrency exchange-traded fund (ETF) applications; Robert J. Jackson Jr., a commissioner appointed by President Donald Trump, suggested that SEC approval for one of these instruments will eventually happen and that he actually hopes it will happen.

On more than one occasion, SEC Chairman Jay Clayton has stated that ETFs tracking digital currencies have a major obstacle to overcome: pricing manipulation in the markets. In the past, however, a separate SEC official expressed interest in seeing financial instruments that promote innovation, and he would be willing to work with Jackson in this regard.

International Bitcoin Trading Trends

Aside from the aforementioned SEC interview, Bitcoin also enjoyed a boost from the increased trading volume in Venezuela, a country where the fiat currency has fallen to worthless levels because of a deep political crisis and unstoppable inflation. Even though the Venezuelan government has enacted tough regulations on the use of cryptocurrencies, residents of that beleaguered country are expected to continue flocking to Bitcoin as a flight-to-safety investment. At least one tech startup has announced plans to install a cryptocurrency ATM in Caracas, but it is unclear if it would be able to do so as long as President Nicolas Maduro continues to cling to power.

As for traders who follow technical analysis, many are skeptical that the 10 percent surge in one day is indicative of a full rally forming. A strong support indicator is lacking, and this is something that technical analysis traders are known to constantly look for. A key level that some traders are following is the Fibonacci retracement last seen in December 2018; at the time, the lower level for BTC/USD was below $3,350, and the pullback was as high as $4,235. What traders are looking to happen in mid-February would be exchange values stabilizing near $3,788 before moving in the direction of $4,000.

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