Bitcoin – Bears Eye sub-$6,000 Levels as Bulls Try to Steady the Ship

Bitcoin slid by 3.32% on Saturday, following a 1.78% fall on Friday, to end the day at $6,184.9.

A 4^th consecutive day in the red and 5 losses in 6 days left Bitcoin down 15.3% for the current week, with Bitcoin and the broader market unable to shake off a run of negative news hitting the wires last week.

A positive start to the day saw Bitcoin move through to a late morning intraday high $6,475.5 before easing back, Bitcoin falling well short of the day’s first major resistance level at $6,525, with the prospect of EU specific rules and regulations for the cryptomarket weighing ahead of next week’s EU Finance Minister gathering.

Tracking the broader market, a late afternoon sell-off saw Bitcoin slide through the day’s first major support level at $6,298.5 and second major support level at $6,197.3 to an intraday low $6,119.5 before steadying, the day’s reversal reaffirming the extended bearish trend formed at early May’s swing hi $9,999.

While Bitcoin managed to avoid a slide back to sub-$6,000 levels, last hit back on 14^th August, the failure to recover back through the day’s first and second major support levels by the day’s end suggests more pain to come for Bitcoin and the broader market, with the bullish talk of $20,000 coming to an abrupt.

The reversal across the broader market has seen Bitcoin’s dominance rise to 56%, its highest level of the year, reflective of the bearish sentiment across the broader market, with the cryptomarket’s total market capitalization now sitting at $191.35bn, its lowest level since November of last year.

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At the time of writing, Bitcoin was down 0.15% to $6,175.5, Bitcoin moving through to $6,200 levels, with a morning high $6,208.4 before pulling back to a morning low $6,140.5, the moves through the early part of the day leaving the day’s major support and resistance levels untested.

For the day ahead, a move back through the morning high $6,208.4 to $6,250 would raise the prospects of a late weekend relief rally to bring $6,300 levels into play, while Bitcoin will likely struggle to take a run at the day’s first major resistance level at $6,400, barring particularly positive news hitting the wires.

Failure to move back through to $6,200 levels and take a run at $6,300 levels through the late morning could see Bitcoin take a bigger hit later in the day, with a fall back through the morning low $6,140.5 bringing the day’s first major support level at $6,044.43 and sub-$6,000 levels into play.

A move back through to $6,200 levels and hold this morning will be key for Bitcoin and the broader market, any fall back towards the early morning low likely to lead to another day of heavy losses, investors having very little incentive to come off the side lines with Bitcoin and the broader market facing so much regulatory uncertainty.

For an asset class created to free the world from the grip of governments, central banks and financial institutions, the very same have ultimately contributed to Bitcoin and the broader market’s slide from all-time highs and there may be more to come.