Bitcoin And The New Nemesis at $6,500It’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.
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.
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.