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Bitcoin – Another Day in the Ranges or Can the Bulls Make a Move?

By:
Bob Mason
Published: Oct 8, 2018, 03:53 UTC

Bitcoin continues to face resistance at $6,600, with another breakout this morning short lived. It could be another day in the ranges...

Bitcoin Board

Bitcoin gained 0.33% on Sunday, partially reversing Saturday’s 0.67% loss, to end the day at $6,617, Sunday’s gain reducing Bitcoin’s loss for the week to just 0.07%.

A bearish morning saw Bitcoin slide from a morning high $6,605.8, through the first major support level at $6,656.47, to an intraday low $6,525 before steadying, Bitcoin’s struggles to hold on to $6,600 levels continuing through the morning.

Relatively range bound through the afternoon, Bitcoin failed to break back through to $6,600 levels until a late in the day rally that saw Bitcoin strike an intraday high $6,640.4 before easing back, resistance at the day’s first major resistance level at $6,640.97 pinning Bitcoin back from more material gains on the day.

While Bitcoin ended the week in the red, the good news for the Bitcoin bulls was the hold on to $6,600 levels by the day’s end. The bulls will be looking for a move back through to $6,700 levels to take another run at the 26.2% FIB Retracement Level of $6,757, with Bitcoin needing to breakout to $7,000 levels and the 38.2% FIB Retracement Level of $7,376 to begin the formation of a bearish trend reversal.

With volatility on the lower side, Bitcoin is going to need to have a spectacular week to form a bullish trend, uncertainty over the pending SEC decision and anticipated G20 rules and regulations for the cryptomarkets reasons for Bitcoin’s upside to be limited.

Elsewhere in the cryptomarket, it was a mixed bag, some minor losses and gains seeing the total market cap hover at just under the $220bn mark, with Bitcoin’s dominance holding on to 52% levels in spite of its minor loss for the week.

On the news front, it was a relatively quiet weekend, with the general chatter relating to low volumes and volatility and hopes of the SEC finally turning the corner and approving at least a number of the Bitcoin ETF applications under review.

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At the time of writing, Bitcoin was down 0.09% to $6,603.4, with Bitcoin pulling back from a start of a day morning high $6,622.4 to a morning low $6,599.2 before recovering to $6,600 levels, the day’s major support and resistance levels left untested early on.

For the day ahead, a move back through the morning high $6,622.4 would support a run at the day’s first major resistance level at $6,663.27, while we would expect Bitcoin to continue falling short of the 23.6% FIB Retracement Level of $6,757 and $7,000 levels with regulatory risk continuing to limit Bitcoin’s progress near-term.

Failure to move back through the morning high $6,622.4 could see Bitcoin ease back to sub-$6,600 levels to bring the day’s first major support level at $6,547.87 into play, a fall through $6,695 a signal of a possible sell-off later in the day.

BTC/USD 08/10/18 Daily Chart

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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