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Bitcoin – A Bounce Back, but $9,000?

By:
Bob Mason
Published: Jul 28, 2018, 05:07 UTC

Bitcoin recovers through to $8,200 that continues to be a key level, with a break through to $8,500 needed to bring $9,000 into play

Bitcoin – A Bounce Back, but $9,000?

Bitcoin jumped by 3.2% on Friday, reversing Thursday’s 2.96% slide, to end the day at $8,193, the recovery leaving Bitcoin with a 10.74% gain for the current week, which comes off the back of a 16.5% rally through the previous week.

A relatively choppy first half of the day saw Bitcoin pullback to an early afternoon intraday low $7,815.1, calling on support at the 23.6% FIB Retracement Level of $7,857 on a number of occasions through the early part of the day before an early afternoon recovery kicked in, the first major support level at $7,761.1 left untested on the day.

The afternoon rally saw Bitcoin break back through the day’s first major resistance level at $8,214.6 to an intraday high $8,291 before easing back to $8,100 levels by the close.

In spite of the mid-week sell-off, continued support at the 23.6% FIB Retracement Level of $7,857 has given Bitcoin a new floor and should support Bitcoin at $8,000 levels and a possible move towards $9,000 in the coming week, should the news wires remain friendly.

The SEC rejection of a Bitcoin ETF submission had weighed on Bitcoin and the broader market on Thursday and in the early hours of Friday, but with the SEC being quite clear that the rejection was more to do with the terms of the proposal than the association with Bitcoin and the cryptomarket, there should be some optimism over the September decision on the Bitcoin ETFs that are expected to be approved.

There was no other news to rock the markets, giving Bitcoin and the broader market some respite from the mid-week reversal and providing further evidence to the Bitcoin doubters that Bitcoin and the altcoins are here to stay.

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At the time of writing, Bitcoin was up 0.26% to $8,209.2, with Bitcoin recovering from an early morning low $8,156.5 that came from a continuation of late Friday’s pullback to sub-$8,200 levels.

The recovery from the morning’s low saw Bitcoin move through to a morning high $8,227.2 before easing back, with the day’s moves leaving the first major support level at $7,908.4 and first major resistance level at $8,384.3 untested early on.

For the day ahead, a move through the morning high $8,227.2 to $8,300 levels would support a run at the first major resistance level at $8,384.3 to bring $8,400 levels back into play for the first time since Wednesday, while sentiment across the broader market will need to materially improve for a weekend rally to bring $9,000 levels into play.

Failure to move through to $8,300 levels could see Bitcoin go into reverse later in the day, with pullback through the morning’s $8,156.5 likely to bring the first major support level at $7,908.4 before any recovery, Bitcoin expected to continue to hold on to $8,000 levels by the day’s end, the new wires unlikely to be delivering anything too damaging to weigh on investor appetite.

BTC/USD 28/07/18 4-Hourly Chart

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About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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