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Bitcoin – Back in the Red and in the Hands of the Bears

By:
Bob Mason
Published: Jun 15, 2018, 09:14 UTC

Bitcoin is back in the red as the bears take back control, with no end in sight to Bitcoin's woes. While recent moves suggest that the bearish trend may have bottomed out, it only takes another hack for the markets to tumble again.

ETH/USD daily chart, June 12, 2018

Bitcoin gained 5.38% on Thursday, reversing Wednesday’s 3.83% fall, to end the day at $6,633.7.

A start of the day intraday low $6,269.5 saw Bitcoin steer clear of the day’s first major support level at $6,063.43, supporting a move through to a morning high $6,599.8, testing the day’s first major resistance level at $6,567.23 before an early afternoon pullback to $6,300 levels.

An afternoon rally saw Bitcoin move back through the day’s first major resistance level at $6,567.23 to an intraday high $6,736.5 before Bitcoin pulled back to $6,600 levels by the day’s end, the moves through the day coming in spite of the extended bearish trend formed at 5th May’s swing hi $9,999.

While the news wires were on the quieter side and price levels drew investors in from the side lines, the late in the day pullback continues to be an issue for the Bitcoin bulls and the broader market, investors unwilling to leave positions open in fear of a news wire driven sell-off.

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At the time of writing, Bitcoin was down 0.71% to $6,586.9, with the late in the day Thursday reversal continuing into the early hours of this morning.

A morning’s $6,642.1 high came at the start of the day, falling short of the first major resistance level at $6,823.63, before a pullback, with Bitcoin hitting a morning low $6,550.2, leaving the day’s first major support level untested in what’s been a relatively range bound start to the day, in spite of the morning’s losses.

With the bears in control, Bitcoin would need to move back through to the morning’s $6,642.1 high to support a run at the day’s first major resistance level at $6,823.63 and bring $7,000 levels into play through the latter part of the week, though resistance is likely to be heightened, which would likely hold Bitcoin back from a break out through to $7,000 levels.

Failure to move back through the morning’s high would likely see Bitcoin take a hit later in the day, range bound moves having led to material losses during bearish trends, the day’s first major support level at $6,356.63 in play, while sub-$6,000 support levels will likely be left untested, the recent moves suggesting that Bitcoin may be bottoming out.

Elsewhere in the cryptomarket, it was a sea of red, with Ethereum taking the biggest hit at the time of writing, down 4.18%, while Bitcoin Cash and Litecoin also struggled, down 3.43% and 3.74% respectively, the trio coughing up Thursday’s gains through the morning.

XRP/USD 15/06/18 4-Hourly Chart

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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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