The probability of a bullish move in bitcoin (BTC) has gone up in the last 24 hours.
To start with, the leading cryptocurrency has remained well above the key support of $6,230 (Aug. 20 low) despite the ETF rejection, adding credence to our assessment that the cryptomarkets had already priced in the bad news.
Further, the decision by the US Securities and Exchange Commission (SEC) to review the rejection of the nine bitcoin-based exchange-traded funds (ETF) could demoralize the bears and trigger an unwinding of the short positions.
It is worth noting that the BTC/USD shorts on Bitfinex are hovering near record highs seen on April 12. So, there is a real risk of a significant short covering rally
BTC/USD Shorts on Bitfinex
And last but not the least, the technical chart below indicates the path of least resistance remains to the upside while BTC is holding above the crucial rising trendline.
At press time, the cryptocurrency is changing hands at $6,550 – up 1.6 percent on a 24-hour basis, having bottomed out at $5,859 on Aug. 14.