USDT: No Such Thing as Too MuchOct 7, 2019
The United States Securities and Exchange Commission (the SEC) still believes that the primary cryptocurrency is not a security. As reported by The Block, Cipher Technologies Bitcoin Fund filed an application to register a closed-end interval fund and investment management company. The application states that bitcoin is a security. The SEC experts did not agree with this statement, citing Howe test and the SEC digital asset framework released earlier this year.
BTC/USDT rate is currently holding above the technical level of support of $7,800, which is the bottom boundary of the downward-pointing triangle. The breach of the bottom boundary of this pattern can trigger a strong wave of selloffs, crashing the price by another $900-$1,000, to the next technical level of support of $6,800.
The bearish scenario will only come to pass if the $7,800 mark is broken through; until that happens there remains a chance that the buyers will restart the growing trend. We will only be able to expect the rate to continue going up if and when the BTC/USDT rate climbs above $8,500. From our reading of the indicators this is still a possible scenario.
On the daily graph, the MACD histogram columns are starting to cross the 0 mark from the bottom to the top, and the sliding averages are repeating those of December 8, 2018, the date right before the next rally started. At the same time, the RSI indicator has started showing the recovery and confidently surpassed the 30 mark, which proves that traders do have the purchasing power.
As a reference: yesterday 50 million USDT came into the market via Binance. This gives us hope that the owner of the funds will start actively buying the foundational cryptocurrency.