Bitcoin – A Break Out from $8,200 or Back in the Red?

Bitcoin calls on support levels early, with investors now looking out for the G20 cryptocurrency rules and regs.
Bob Mason
ETH/USD weekly chart, June 18, 2018
bitcoins and euro money

Bitcoin slipped by 0.17% on Sunday, partially reversing Saturday’s 0.63% gain, to end the week up 11.13% to $8,222.

A bullish end to Saturday saw Bitcoin move from an opening $8,235.7 to a start of a day intraday high $8,313.3, falling short of the first major resistance level at $8,316.13. A pullback through the morning to $8,100 levels and a late morning intraday low $8,123 saw Bitcoin come within reach of the day’s first major support level at $8,109.13 before recovering to $8,200 levels by the end of the morning.

Through the day, $8,200 continued to be the key level for Bitcoin, which Bitcoin struggled to hold on to through the afternoon, with a late in the day move to a 2nd half of a day $8,276.5 high failing to kick off a late weekend rally, leading to Bitcoin falling back to sub-$8,200 levels by the day’s end.

For the Bitcoin bulls, the lack of a weekend rally would have been a disappointment, with the prospects of moving through to $9,000 levels diminishing through the weekend in spite of the news wires remaining relatively quiet.

Whether the lack of momentum stemmed from the SEC’s decision on the latest Bitcoin ETF proposal remains to be seen, with the 31st July deadline for the G20’s unified cryptomarket rules and regulations likely to be a key consideration for investors, with just 2-days remaining.

News of pressure mounting for South Korean regulators to roll out tighter requirements for crypto exchanges was also a reversal to earlier announcements by the South Korean government that there would be a softer approach from a rules and regulatory standpoint.

Ultimately, the more thefts and breaches of anti-money laundering and KYC procedures, the more heavy handed governments and regulators will likely become, with news of Iran looking to circumvent the imminent introduction of U.S sanctions another factor for investors to consider, the U.S government unlikely to sit idly by.

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At the time of writing, Bitcoin was down 0.53% to $8,177.8, in what’s been an unusually choppy start to the day for Bitcoin, which fell through the first major support level at $8,125.57 to a morning low $8,065.1 before bouncing back to a morning high $8,301.7, to fall just short of the first major resistance level at $8,315.87.

Bitcoin’s struggles at $8,200 levels was evident once more however, with an easing back through the early hours to sub-$8,200 levels, pinning back hopes of a break out through to $8,700 levels to bring $9,000 levels back into play.

For the day ahead, a move back through $8,219.43 would support another run at $8,300 levels and the first major resistance level at $8,315.87, any break supportive of a run at $8,400 levels later in the day.

Failure to break back through to $8,300 levels by early afternoon could see Bitcoin pullback through the morning’s $8,065.1 low to call on support at the second major support level at $8,029.13, with sub-$8,000 levels in play later in the day should sentiment fail to improve.

The news wires have started the week on the busier side and we can expect investors to be sensitive to any noise of an imminent roll out of the G20’s rules and regs for the cryptomarket.

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