The price of bitcoin today rose to a 4-day high after a significant sell-off that followed the breakdown of key support levels 6200 and 5900.
Negative news came on the issue of launching ETFs on bitcoin. The head of the securities and exchange Commission Jay Clayton expressed concern that cryptocurrencies could be stolen or manipulated by exchanges. Clayton said investors should be confident that the underlying asset underlying the ETF is not at risk of manipulation. Such guarantees are not available in most markets where digital currencies are traded. One of the reasons for the fall of the cryptocurrency market in November is the regulator's decision to oblige two crypto-startups to reimburse investors attracted during the ICO, pay a fine and submit regular reports to the SEC.
Well-known economist Mohammed El-Erian expressed the opinion that cryptocurrencies will continue to exist, despite a significant drop in their prices this year and will become more acceptable after the arrival of a larger number of institutional investors on the market. He also noted that he considers cryptocurrencies as commodities, not currencies, because they do not have the properties necessary to replace money.
According to the technical analysis, the support was formed at the level of 3700. In the case of its breakdown is likely to decrease to 3500. If the price returns above 4500, it is likely to rise to 5000.