Bitcoin – A Big Few Days for the Bulls to Get Through

Bitcoin fell by 2.46% on Wednesday, partially reversing Tuesday’s 8.52% gain, to end the day at $8,183.1.

In a relatively choppy start to the day, Bitcoin moved through to a start of the day intraday high $8,488.1, coming up short of the first major resistance level at $8,691.93 and Tuesday’s $8,506.7 high, before a mid-morning reversal saw Bitcoin slide through to a mid-afternoon intraday low $8,073.

A late in the day recovery saved Bitcoin from heavier losses on the day, which would have seen Bitcoin slide back to sub-$8,000 levels to bring the first major support level at 7,857.23 and, more importantly, the 23.6% FIB Retracement Level of $7,857 into play.

For the Bitcoin bulls, Wednesday’s pullback was more of a consolidation than a shift in sentiment, with Bitcoin finding the necessary support through the day to avoid sub-$8,000 levels.

In spite of the day’s loss, the near-term bullish trend formed at 24^th June’s swing lo $5,755 remained intact, with Bitcoin managing to steer clear of the 23.6% FIB Retracement Level of $7,857, though Bitcoin will need to break back through Tuesday’s swing hi $8,506.7 to avoid another reversal similar to the one seen back in early May, where a bullish trend had seen Bitcoin climb to $9,999 before an extended bearish trend formed and continued through to late June.

There was no particularly negative news hitting the news wires to pin Bitcoin back on the day, with investors continuing to lock in profits, though news of the SEC delaying its Bitcoin ETF review to late September will have dampened market spirits, investors now having to wait to discover whether the anticipated influx of capital will materialise and with a wait of almost 2-months, a lot can happen between now and then in the world of Bitcoin.

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At the time of writing, Bitcoin was up 0.71% to $8,236.3, with Bitcoin moving from a start of the day $8,175.6 to a morning high $8,260 in the first hour before pulling back to sub-$8,200 levels and a morning low $8,172.5.

While the early moves left the day’s first major support level at $8,008.03 and first major resistance level at $8,423.13 untested, $8,200 looks to be a key level for Bitcoin for the day, with support kicking in at sub-$8,200 levels in the early part of the day.

For the day ahead, a move back through $8,248.07 would support another run at $8,300 levels that would bring the day’s first major resistance level at $8,423.13 into play, though Bitcoin will need to avoid any slide back through to sub-$8,200 levels in the late morning to support a recovery from Wednesday’s losses.

Failure to break back through to $8,300 levels later in the morning could see Bitcoin give up early gains and slide through the morning low $8,172.5 to bring the first major support level at $8,008.03 into play, though we would expect Bitcoin to avoid a major sell-off if $8,200 levels are retained through the middle part of the day.

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