Bitcoin $5,000 – It’s More Likely than $10,000

Bitcoin sits in positive territory early, but the gains are not particularly convincing and could lead to yet another reversal if Bitcoin doesn’t make a move soon.
Bob Mason
Bitcoin daily chart, June 11, 2018
Gold Bitcoin coins on black silk background

Bitcoin fell by 4.87% on Tuesday, more than reversing Monday’s 1.54% gain, to end the day at $6,538.8.

A range bound morning saw Bitcoin pullback from a start of the day intraday high $6,873.4, which fell short of the day’s first major resistance level at $6,963.9 and the 23.65 FIB Retracement Level of $7,417 untested through the day.

A midday sell-off saw Bitcoin fall through the day’s first major support level at $6,694.6 to $6,683.2 before an early afternoon slide saw Bitcoin tumble to an intraday low and new swing lo $6,436.1 before recovering to $6,500 levels by the close.

Bitcoin found little support through the early part of the afternoon, the slide seeing Bitcoin fall through the day’s second major support level at $6,527.5 with relative ease before buyers returned late in the day.

Negative sentiment has plagued the cryptomarket since the weekend with news of U.S regulators deepening their investigations into price manipulation, coupled with lingering concerns over how South Korean regulators will address the constant threat from hackers doing the damage, one South Korea’s smaller exchanges hacked over the weekend.

For now the bears are certainly in control of the market, with the only positive for the Bitcoin Bulls being Bitcoin’s hold at $6,000 levels for now, a continued failure to test major resistance levels will remain a concern for the Bitcoin bulls.

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At the time of writing, Bitcoin was up 0.45% to $6,573.1 in what’s been a relatively uneventful start to the day following Tuesday’s late sell-off to a new swing lo that reaffirmed the extended bearish trend formed in early May.

Bitcoin’s morning low $6,517.5 and $6,611.7 high steered clear of the day’s first major support and resistance levels, with the day ahead looking precarious for investors looking for direction, current price levels considered enticing for many.

For the day ahead, a move through the $6,616 would support a run at the day’s first major resistance level at $6,796.1, though sentiment across the broader market will need to improve for Bitcoin to hold onto any gains through the day, the threat of more negative news leaving investors with little choice but to lock in profits early.

Failure to move through $6,616 to take a run at the day’s first major resistance level will likely see Bitcoin give up early gains, with a pullback through the day’s first major support level at $6,358.8 likely before any recovery.

For the bulls, Bitcoin is a long way off the 23.6% FIB Retracement Level of $7,278 and, while there has been a few solid days, it may take some time for Bitcoin to find any material support to bring $9,000 levels back into play, such a move fully reversing the extended bearish trend.

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