Bitcoin – $6,500 Struggles Return, the Bulls Needing a Breakout to $6,600

Bitcoin slipped by 0.18% on Friday, following Thursday’s 2.44% gain, to end the day at $6,477.7, with the Thursday rally supporting Bitcoin’s 3.56% gain for the week, Monday through Friday.

A particularly choppy Friday morning saw Bitcoin rally in the early hours to an intraday high $6,596.5, breaking through the day’s first major resistance level at $6,567.13, before hitting reverse, Bitcoin sliding through the day’s first major support level at $6,371.13 to an intraday low $6,355.2 before recovering through the afternoon.

Bitcoin moved back through to $6,500 levels in the 2^nd half of the day recovery before pulling back, with Bitcoin failing to hold on to $6,500 levels for a second consecutive day, investors quick to lock in profits on fears of yet more negative news hitting the crypto wires

In spite of the modest gain through the week and shift in sentiment across the broader market, following a sell-off through the first half of the week, the extended bearish trend remained intact, with Bitcoin falling short of the 23.6% FIB Retracement Level of $6,757 and $7,000 levels needed to attempt another bearish trend reversal.

Bitcoin’s dominance eased from a week high 58.12% on Wednesday to 55.8% at the time of writing, as the cryptomarket’s total market cap recovered to $201.64bn at the time of writing, the total market cap having been down at a week low $186.21bn on Wednesday.

There was nothing particularly negative on the news front to weigh on Bitcoin and the broader market through the day, with the G20 yet to roll out the delayed rules and regulations and the SEC yet to make any statements on its review of the 9 applications that it had rejected in August.

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At the time of writing, Bitcoin was up 0.29% to $6,498.6, with Bitcoin moving from a start of a day morning low $6,475.1 to a morning high $6,526.5 before easing back, $6,500 proving to be a key level to breakout from for the Bitcoin bulls to take back control.

The moves through the early hours left the day’s major support and resistance levels untested.

For the day ahead, holding above $6,480 would support another run at $6,500 levels to bring the day’s first major resistance level at $6,597.73 into play, though the news wires will need to be particularly friendly for Bitcoin to take a run at the first major resistance level, the extended bearish trend continuing to see profit taking pin Bitcoin back from any sustained recovery.

Failure to hold above $6,480 through the morning could see Bitcoin hit reverse later in the day, with any pullback through the morning low $6,475.1 likely to bring sub-$6,400 levels and the day’s first major support level at $6,356.43 into play, though we would expect Bitcoin to steer clear of sub-$6,400 levels, barring materially negative news hitting the wires.

Elsewhere, NEM’s XEM, DASH and Cardano’s ADA were in the red at the time of writing to buck the trend, while Ethereum was the early front runner, up 2% in the early hours, the mixed sentiment across the majors a possible test for investors later in the day.