Tight SEC holdings

8 Jun 2023Morning folks,

So, SEC seriously starts working with crypto. If you believe that G. Gensler will easily relief this subject - you're wrong, we're just at the beginning of nightmare for Binance and Coinbase. Just understand that stocks regulation is detailed statement of owners, reserves, cashflows etc. etc.

And I'm sure that a lot of blank spots will come on the surface if real regulation starts. Traders do not like "regulation" topic, treating its boring, but we've warned about it two months ago in our fundamental report, dedicated to regulation topic. Now what?

Well, in short-term, while SEC is preparing next step and while the court will consider initial lawsuit bill, BTC could get relief. But, at the same time, chances on downside continuation are solid.

Still, if you would like to buy - technically you have reasons to do this. On daily chart we have nice bullish engulfing pattern, including reversal session, and here, on 4H chart it takes the shape of reverse H&S, suggesting upside extension. Price is already at the bottom of right arm - particularly point for decision making. Don't hide stops too low, use puny reverse H&S pattern on 1H. This, at least minimize your risk.

Bears, it turn, should wait for H&S failure and drop under 26K lows. In this case downside action starts, supposedly to next daily target around 23.5-24K area.

Guys, I place the direction for this analysis as "long" just because of technical picture, but personally I will not participate in this trade due to high legislative risks.