Bitcoin And The New Nemesis at $6,500

It’s been a positive start to the day, but with Bitcoin facing strong resistance at $6,500 once more, the path of least resistance may be downwards.
Bob Mason
Bitcoin euros and USD

Bitcoin gained 1.44% on Sunday, partially reversing Saturday’s 3.08% fall, to end the day at $6,483.4.

An early pullback to an intraday low $6,309.3 saw Bitcoin steer clear of the first major support level at $6,249.03, with Bitcoin having found plenty of support at $6,300 through the weekend, a new line in the sand for the Bitcoin bulls looking to avoid another slide to sub-$6,000 levels.

A late rally saw Bitcoin hit an intraday high $6,550.3 before easing back to $6,400 levels by the day’s end. The late in the day high fell shy of the first major resistance level at $6,568.53 and more importantly, well-short of the 23.6% FIB Retracement Level of $6,757, to leave the extended bearish trend firmly intact.

The moves through the weekend left Bitcoin up 2.68% for the week, bringing to an end a number of heavy weekly losses stemming from regulatory chatter from the South Korean government and the much talked about SEC postponements to approving or declining a number of Bitcoin ETFs.

For the Bitcoin bulls, failing to hold on to $6,500 levels remains the issue, with Bitcoin having managed to break through to $6,500 levels and beyond in 5 of the 7 days of last week, whilst failing to hold on to $6,500 levels by the close on each occasion except one, Friday’s $6,571.2 finish that came off the back of the broad based rally that saw Bitcoin gain 4.06%.

The continued resistance at $6,500 has left Bitcoin in a relatively tight range in recent sessions, which may well be a signal for a sizeable move, though direction will likely be more hinged on updates from the G20, regulators from key crypto jurisdictions and also news from the SEC on the status of Bitcoin ETF approvals.

Get Into Cryptocurrency Trading Today

At the time of writing, Bitcoin was up 0.08% to $6,490, with Bitcoin moving through to an early morning $6,524 high before pulling back to sub-$6,500 levels, the moves through the morning leaving the major support and resistance levels untested as Bitcoin continues to struggle to break out from $6,500.

For the day ahead, a move back through the morning high $6,524 would support a run at the first major resistance level at $6,586.03 and $6,600 levels, though for Bitcoin to break out from $6,500 levels, sentiment across the broader market will need to improve, with a hold above $6,450 key through the morning.

Failure to hold above $6,450 and move back through to $6,500 levels could see Bitcoin take a hit later in the day, with any fall through $6,450 likely to bring the day’s first major support level at $6,345.03 into play before any recovery.

Through the weekend $6,300 support proved to be key for the Bitcoin bulls and we will expect this to continue through the early part of the week.

Buy & Sell Cryptocurrency Instantly

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US