Decoding the SEC’s Impact on Cryptocurrency
The U.S. Securities and Exchange Commission (SEC), under Gary Gensler’s leadership, seems intent on imposing strong regulatory measures on the burgeoning cryptocurrency sector. The perceived threat this sector poses to the supremacy of the U.S. dollar has resulted in substantial enforcement actions against crypto exchanges and other platforms in the ecosystem. Consequently, the market is witnessing an exodus of retail investors, largely driven by profit-making ambitions. These events are likely to cause the death of many cryptocurrencies that the SEC labels as securities, while others might face stunted growth due to the constant threat of potential SEC action.
The Persistent Bullish Trend of Bitcoin
Despite the trials and tribulations faced by the crypto sector, Bitcoin’s upward trend remains unscathed. The cryptocurrency has been following this trajectory since the start of the year. An 18% correction since its peak at around $31,000 in early April does not mar this trend; in fact, it’s considered quite normal. Two key indicators, the weekly Stochastic RSI and the Gaussian Channel, serve as harbingers of this positive trend.
Analyzing Key Indicators: Weekly Stochastic RSI & Gaussian Channel
The weekly Stochastic RSI, an indicator soon to trigger, is inching towards bottoming out, presenting bullish divergence. This divergence could be a robust signal for Bitcoin considering its weekly time frame. Another powerful tool, the Gaussian Channel, helps to predict price trends with impressive precision. As per Bitcoin’s short history, the Gaussian Channel, when observed at a higher time frame of five days, hasn’t given false signals. The channel flipped from red to green in early May, indicating an upward trend. Bitcoin’s price has tested the top of the channel, and a bounce-back could be expected soon.
Bitcoin’s Potential to Trump the Dollar
While these indicators do not conclusively establish that Bitcoin has entered its bull market, they certainly provide positive signs. Furthermore, due to Bitcoin’s decentralization, predictable supply, and scarcity, it’s likely that it will outperform the dollar, which continues to suffer significant debasement.
Disclaimer: This article is intended for informational purposes only. It does not constitute or is intended to be interpreted as legal, tax, investment, financial, or any other form of advice.
