Bitcoin – Back in the Red as the Bears Tighten their GripIt’s just got even more bearish for Bitcoin and the broader market, with the path of least resistance continuing to be downwards through the summer, the day’s pullback to $6,100 levels bringing $5,000 levels into play.
Bitcoin gained 1.1% on Wednesday, partially reversing Tuesday’s 5.45% slide, to end the day at $6,371.3.
A relatively range bound day, by recent standards, saw Bitcoin pullback to a morning intraday low $6,286.3 before recovering to $6,300 levels, the good news for the Bitcoin bulls being that a spill over from Tuesday’s late in the day fall was averted at the start of the day.
Bitcoin’s recovery through the late morning to an intraday high $6,407.9 left the day’s major support and resistance levels untested, with Bitcoin managing to avoid pulling back to Tuesday’s $6,260 lows that would have brought sub-$6,000 levels into play on the day.
While Bitcoin managed to find some much needed respite on the day, the lack of a more material rebound to eat into the 3 consecutive days of losses would have been a concern, with Bitcoin now having failed to break through the 23.6% FIB Retracement Level for a 2nd consecutive day, a downward trend on Bitcoin’s intraday highs leaving the extended bearish trend formed at 5th May’s swing hi $9,999 intact.
The only question that remains is how low can Bitcoin go and whether sub-$5,000 levels are a real possibility in the summer before any recovery.
It all hinges on how restricting the heavily anticipated rules and regs to be rolled out by the G20 will be and where Bitcoin sits at the time of the release, with sub-$6,000 levels certainly a reasonable target for the Bitcoin bears this week alone.
At the time of writing, Bitcoin was down 2.87% to $6,194.9, with the Bitcoin bears back in control as Wednesday’s gains get wiped out in the early hours of this morning.
A start of the day high $6,377.7 saw Bitcoin fall well short of the day’s first major resistance level at $6,424.03 and more importantly $6,400 levels that would have been needed to restore some confidence across the broader market.
Negative sentiment across the cryptomarket saw Bitcoin slide through the day’s first major support level at $6,302.43 and second major support level at $6,233.57 to a morning low $6,145 before finding much needed support to avoid testing the day’s third major support level at $6,111.97.
For the day ahead, a move back through to $6,355 would support a run at $6,400 levels to bring the day’s first major resistance level at $6,424.03 into play, though with Bitcoin languishing at sub-$6,200 levels at the time of writing, breaking through to $6,400 levels may well be a step too far. Bitcoin will need to break back through the day’s second major support level at $6,233.57 to $6,300 levels and ending the day at $6,300 levels may well be as good as it gets.
Failure to move back through to $6,355 could see Bitcoin pullback to test the day’s third major support level at $6,111.97 before any later in the day recovery, with Bitcoin likely to avoid testing sub-$6,000 support levels today, though that isn’t to say that Bitcoin won’t get there before the end of the week.