Bitcoin – A Positive Week Wiped Out as the Bitcoin Bears Fight BackThe news wires hit the cryptomarket this morning, leaving Bitcoin to call on sub-$4,000 support levels, last week’s gains wiped out in a matter of hours.
Bitcoin slipped by 1.61% on Sunday, partially reversing Saturday’s 5.02% rally, to end the day at $4,173.
In spite of the end of week loss, Bitcoin managed to hold onto positive territory for the week, gaining 2.05% to bring to end 3 consecutive weeks in the red that saw Bitcoin slide from $6,500 levels to a new swing lo $3,657.6, struck on 25th November.
A 10.86% rally on Wednesday did the trick, with Bitcoin seeing red in only 3 of the last 7 sessions.
On the day, it was a mixed bag for the majors, though skewed to the negative, with Bitcoin tracking the broader market through the morning, rising to an early morning intraday high $4,369.8, coming up short of the first major resistance level at $4,399.37 before hitting reverse.
Sliding through the morning, Bitcoin fell to a late morning intraday low $4,113.0 before steadying to recover to $4,200 levels. A late in the day reversal led to a pullback to $4,100 levels by the day’s end.
There was no material news released through Sunday to influence Bitcoin and the broader market, with the end of day pullback reflective of investor jitters going into the start of a new week, the Bitcoin bulls needing to build on last week’s minor gain.
For the Bitcoin network, the downward trend in hash rates eased off, with hash rates having bottomed out at a 3-month low 33.6641E recorded last Thursday, before moving back to 38.9554E on Sunday, still well below a 3-month high 60.4225E recorded on 1st November.
At the time of writing, Bitcoin was down 3.29% to $4,035.7, with moves through the early morning seeing Bitcoin slide from a start of a day morning high $4,189.8 to a morning low $3,980 before recovering to $4,000 levels.
The bearish start to the day saw Bitcoin, not only slide through the first major support level at $4,067.4 to call on sub-$4,000 support levels once more, but also saw last week’s 2% gain evaporate in a flash as a series of news reports hit the crypto wires of governments and regulators planning to introduce new rules and regulations for the cryptomarket.
Those reportedly looking to be rolling out new rules and regs include Japan’s FSA, Thailand’s SEC and also Estonia and Canada, jurisdictions seemingly unwilling to wait until the G20’s unified rules and regulations that could have formed a broader market blue print.
In spite of the sell-off, Bitcoin managed to move back through to $4,000 levels that should be of some comfort to the bulls, though things could go from bad to worse should other crypto jurisdictions follow suit and begin rolling out more stringent policies to curb money laundering and other illegal activities.
For the day ahead, a move back through the first major support level at $4,067.4 to $4,100 levels would ease some of the pain to bring a possible rebound into play later in the day, a move through $4,218 needed to bring $4,300 levels into play before any pullback.
Failure to move back through the first major support level could see Bitcoin call on sub-$4,000 support levels for a second time, with the day’s second major support level at $3,961.8 very much in play through the day.