Bitcoin Price Defends Key Support Despite ETF Rejection

Bitcoin is teasing a minor rally today, having defended key support at $6,230 despite a string of bad news.

At press time, the leading cryptocurrency is changing hands at $6,400 on Bitfinex - down 3 percent on a 24-hour basis.

The risk-off tone in the cryptocurrency markets is likely associated with the US Securities Exchange Commission's rejection of several proposals for bitcoin exchange-traded funds on Wednesday.

Still, BTC has avoided a break below the rising trendline and is holding well above the support at $6,230, as seen in the chart below, forcing us to consider the possibility of a rally.

That said, the probability of a break below $6,230 is low, as the SEC ruling has not caught the market off guard - that is, the investor community was likely expecting the commission to deliver bad news after its previous ETF rejection in July.

Following that, the bitcoin price crashed more than 30 percent in the three weeks to Aug. 14, indicating the market had priced in the negative news in advance.

If the support at $6,230 is breached, then the bears may push the cryptocurrency down to the recent low of $5,859.

A UTC close below $5,755 would signal a resumption of the long-run bear market and would open the doors to $5,000.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

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