As The SEC Surprises, Watch Bitcoin Aim For New Support

Last Friday the SEC announced enforcement against startup companies Paragon and AirFox, for the ICO of their coins, PRG and AirToken (AIR) claiming they conducted unregistered sales of securities. These projects could be the low-hanging fruit. We know more are in their sights, including SALT and ex-board member Erik Voorhees.

Up to this point, we have no regulatory clarity, only enforcement clarity and a "path to compliance" for ICO projects which leaves the community confused. Will more ICOs start ponying up a $250k fine and buying back tokens rather than risking non-compliance? And if so, will we start to see projects announcing their intent this week?

Where Could Bitcoin Find Bottom?

Now let’s take a look at cryptocurrency price action. Specifically, Bitcoin which broke below a psychological level of $6,000 last week. On the weekly chart, there is a formation of a bearish engulfing candlestick chart pattern which may have opened doors for further drops towards the 78 percent Fibonacci retracement level at around $4,906.

BTC/USD Weekly Chart Technical Analysis

This level is especially important because it acted a resistance back in August 2017. This was before Bitcoin’s price took off to reach over $19,000 within three months. With that, we may see Bitcoin’s price drop to that level before regaining energy to the upside and bottoming out heading to 2019.

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