Bitcoin Up, but another Tumble May be on the Cards

Bitcoin investors had a rollercoaster of a day on Good Friday and by the end of the day, there was nothing good about it, with Bitcoin ending the day down 3.25% to $6,839.63.

A rally through the early part of the day, saw Bitcoin move through to an intraday high $7,302.35 in the first half of the day, while falling short of the day’s 23.6% FIB Retracement Level of $7,451 and first major resistance level of $7,729.87.

Bitcoin bulled back to an intraday low $6,550 in the 2^nd half of the day, tumbling through the day’s first major support level of $6,676.4 before support kicked in, with Bitcoin managing to recover to an end of day $6,855.5, above the day’s major support levels.

Negative sentiment across the market continued to hold Bitcoin back from a more sustainable rally, with the day’s highs and lows continuing on a downward trajectory, the bearish trend formed at 21^st March’s swing hi $9,188.1 still very much intact through the weekend. Investors have also become mindful of late in the day’s sell-offs and should the trend continue, we can expect the sell-offs to steepen, another downside risk to an already bearish trend.

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At the time of writing, Bitcoin was up 0.91% to $6,912.04, with Bitcoin moving through to a morning high $7,110 before pulling back to sub-$7,000 levels in the last hour, as investors continue to take a more cautious approach through the current bearish trend.

Falling short of the day’s 23.6% FIB Retracement Level of $7,173 and first major resistance level of $7,255.23 suggests that any lateral moves through the middle of the day would test Bitcoin’s support levels this afternoon, the day’s first major support level sitting at $6,502.88.

For the Bitcoin bulls, a run at the day’s $7,110 high would certainly support a test of the day’s first major resistance level, though holding on through to the start of the new week may be an altogether different challenge, with investor sentiment towards an anticipated shift in the regulatory landscape yet to be welcomed, the uncertainty of what’s to come doing all of the damage.

With the Cboe Bitcoin Futures April contract ending the week at $7,240, there’s unlikely to be any influence from the futures market, leaving investor sentiment to drive Bitcoin and the broader market through to Monday.

This morning’s lack of direction and failure to hold above $7,000 levels continues to support the general bearish trend, though that’s not to suggest Bitcoin investors won’t enjoy a move through the middle part of the day.

Elsewhere, Stellar’s Lumen was on the move, up 8.01% at the time of writing, with DASH coming in a distant second, up 3.38%, while Cardano’s ADA bucked the trend early in the day, down 0.54% to $0.143

It’s almost the end of the 1^st quarter and it’s certainly been poles apart from the 4^th quarter of last year and, while turning the page will be a good thing for the Bitcoin and the clan, investors will need to get comfortable with the prospects of a material shift in the regulatory landscape before the bearish trend can reverse.

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