On December 15, with the opening of Wall Street, Bitcoin came under selling pressure and fell below the $41,700 level. At the time of writing, Bitcoin is trading at $42,108, and it is indicated that the BTC/USD pair has experienced a drop of 3.2% or more than $1,300 during the day, according to TradingView data.
Bitcoin, recovering from the sudden volatile movements on December 14, could not maintain its position at the $43,000 level due to the selling pressure from investors. This weakness in the Bitcoin price coincided with the rejection by the United States Securities and Exchange Commission (SEC) of Coinbase‘s request for regulation concerning crypto regulations.
SEC Chairman Gary Gensler explained that the SEC supported the decision for three reasons: that current laws and regulations also applied to crypto securities markets, that the SEC was in the process of creating regulations for crypto securities markets, and that it was important to emphasize the Commission’s freedom to set its own priorities.
The SEC is already involved in the current crypto market process due to the expectation of approving the services of the first Bitcoin spot price exchange-traded funds (ETF) in the United States by the beginning of 2024. Gensler admitted the legal process associated with the institution’s repeated rejection of Bitcoin spot ETF applications in an interview with Bloomberg on December 13.
On the other hand, Keith Alan, the founding partner of the trading data source Material Indicators, pointed out the struggle to turn a significant weekly level into support. This step took the form of the 0.5 Fibonacci retracement line, which is one of the few main barriers to be crossed on the way to the all-time high of $69,000, at the level of $42,500. Material Indicators also noted that large-volume investors increased their purchasing activities during this period.