The Bitcoin Bears Come out of Hiding, Taking $10,000 of the Table

Bitcoin slipped 1.72% on Monday, reversing Sunday’s 0.69% gain, to end the day at $9,237.9, an afternoon bounce back failing to hold as investors locked in profits in fear of a deeper sell-off in the days ahead.

An early morning move through to a day high $9,450 reversed through the first part of the day, Bitcoin falling to a day low $9,100, while holding above the day’s first major support level of $9,075.27 and 23.6% FIB Retracement Level of $8,996.

An afternoon recovery bucked the trend across the broader market, with Bitcoin managing to move through to an afternoon high $9,350 before easing back to sub-$9,300 levels by the day’s end, key resistance levels left untested through the day.

In spite of the day’s losses, Bitcoin held up relatively well compared with its peers and Bitcoin Cash in particularly, which slid 6.43% on the day, though the fall saw the prospects of a move through to $10,000 levels diminish this week, a bottoming out needed for a fresh rally to ensue and bring $10,000 back into play.

There was no particularly negative news to bring Bitcoin and the broader markets down, the bull trend from the 6^th April’s swing low $6,500.2 leading to some profit taking at the end of the month.

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At the time of writing, Bitcoin was down 2.92% to $8,970.4 as Bitcoin caught up with the broader market sell-off at the start of the day, tumbling from an opening $9,240.6 to a morning low $8,876.8 before a partial recovery.

The morning slide saw Bitcoin fall through the day’s first major support level of $9,075.27, 23.6% FIB Retracement Level of $8,996 before support kicked in at the 2^nd major support level of $8,912.6, buyers drawn in despite the negative sentiment across the broader market, though not enough to pull Bitcoin back through to $9,000 levels.

For the day ahead, Bitcoin will need to move back through to $9,000 levels and break free of the day’s first major support level of $9,075.27 to give Bitcoin and the broader market a sentiment boost and the chance of an afternoon rally to reverse Monday’s losses.

Failing to move back through to $9,100 levels could see Bitcoin struggle to hold on to $9,000 through the afternoon, with the morning’s slide through the 2^nd support level of $8,912.63 bringing the 3^rd major support level of $8,562.63 and 38.2% FIB Retracement Level of $8,519 into play later in the day.

While the bull trend formed back on 6^th April remains intact, the lack of a new swing hi since 25^th April’s $9,767.4 has left the run a little tired, contributing to the profit taking at the end of the month, a move back through to $9,500 levels needed to revive the extended run.

Unsurprisingly, the Cboe Bitcoin Futures May contract tracked Bitcoin into the red, down $390 to $8,970, with volumes continuing to rise, whilst yet to have a material influence on investor sentiment across the broader market.

Elsewhere, Waves bucked the trend through the early morning, up 3.53%, while the rest of the majors saw red, Monero and Bitcoin Cash amongst the biggest losers at the start of the day.

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