Bitcoin – Bears Fight On, with $4,000 Levels Targeted

Bitcoin fell by 2.94% on Thursday, following on from Wednesday’s 8.31% slide, to end the day at $5,748.2.

A bearish start to the day saw Bitcoin fall from a start of a day intraday high $5,940 to $5,500 levels, with Bitcoin calling on support at the day’s first major support level at $5,571.67 early. The reversal continued with Bitcoin falling to an early afternoon intraday low and new swing lo $5,432 before finding support to move back through to $5,700 levels and a relatively range bound afternoon.

The reversal came ahead of the Bitcoin Cash hard fork, with price action reflecting support for Bitcoin Cash ABC that alleviated some of the market angst, though uncertainty remains over which of the two will become the dominant coin in the days ahead. If price action is anything to go by, Bitcoin Cash ABC looks to be the clear winner and that should be favorable all round, but with one major issue, the latest hard fork giving the broader market some idea of just how much influence miners can have on a coin and how centralized the voting power on some blockchains actually are.

One would expect the recent trend of blockchains being developed with hybrid consensus algorithms to gain momentum, a number of recent launches using hybrid algorithms to deliver a truly decentralized network that has removed the possibility of a 51% attack.

While Bitcoin struggled on the day, the broader market found some much needed support following Wednesday’s sell-off, though the gains were relatively minor as the market monitors the respective hash rates of the Bitcoin Cash offspring.

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At the time of writing, Bitcoin was 0.55% to $5,717.7, with Bitcoin succumbing to yet another bearish start to the day, falling from a start of a day morning high $5,777.5 to a morning low $5,684.0 before steadying, the day’s major support and resistance levels left untested early on.

Across the broader market, there was plenty of red, with a pullback in Bitcoin Cash ABC weighing on the broader market, ABC’s 6.58% loss significantly heavier than Bitcoin Cash SV’s 3% loss for the morning.

For the day ahead, a hold onto $5,700 levels would support a possible 2^nd half of a day recovery, with Bitcoin needing to move through the morning high $5,777.5 to $5,800 levels to support a run at the day’s first major resistance level at $5,981.47 before any pullback, a breakthrough to $6,000 levels unlikely barring a material shift in sentiment across the broader market.

Failure to hold onto $5,700 levels through the morning could see Bitcoin take a bigger hit later in the day, with a fall through the morning low $5,684 bringing $5,500 levels and the day’s first major support level at $5,473.47 into play before any recovery, more material declines unlikely barring a material increase in support for Bitcoin Cash SV.