Tom Lee: Bitcoin Recovery After ETF Rejection Is a Sign of Improving Technicals
CRYPTO: It’s a sign of a positive change in crypto that #BTC has essentially shrugged off the #Winkelvoss ETF rejection. If this took place in Apri-June (more bearish period), the crypto market would have seen a sizable sell-off. In short, affirming why technicals improving.
— Thomas Lee (@fundstrat) July 28, 2018
On July 27, the SEC rejected the Winklevoss’ latest attempt to list a Bitcoin ETF, citing concerns over fraud and market manipulation of the digital currency.
As a result, Bitcoin briefly dropped below $8,000, hitting a low of $7,800. However, a statement from SEC Commissioner Hester Peirce shortly after the decision detailing official dissent from the agency’s ETF disapproval helped turn things around. Now, Bitcoin has reclaimed the $8,000 level and currently stands at $8,130.
Tom Lee believes that if the same event would have occurred in April or May, the negative price effects would have been far more substantial. He sees this as a sign of improving technicals as investors gain back interest in the market through the ongoing bearish period.
The AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens, has also recovered well since the SEC’s decision. The index dropped to as low as 105.10 over the last 7 days and currently stands at 107.38, up 2.78% on the week.
Related: AltDex 100 Cryptocurrency Index
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.