Bitcoin – Bears Look to Bring Bitcoin Back Down to Earth

Bitcoin hits reverse in the early part of the day, a hold on to $6,700 levels needed to avoid a pullback to test sub-$6,600 support levels.
Bob Mason

Bitcoin slipped by 0.5% on Saturday, partially reversing Friday’s 4.2% rally, to end the day at $6,728.1, the day’s fall leaving Bitcoin with a 3.51% gain for the current week.

A bullish start to the day saw Bitcoin strike an intraday high $6,840.9, coming within range of the first major resistance level at $6,880 and more significantly, breaking out from the 23.6% FIB Retracement Level of $6,757, before hitting reverse.

The reversal saw Bitcoin slide through the early morning to a morning low $6,638.8 before recovering through the afternoon to test selling pressure at the 23.6% FIB Retracement Level of $6,757, with an afternoon high $6,763.7.

A flash crash saw Bitcoin fall through the day’s first major support level at $6,563.3 to an intraday low $6,502.2, with Bitcoin finding the support to move back through to $6,700 levels, but unable to break back through the 23.6% FIB Retracement Level that has become a new line in the sand for the Bitcoin bulls.

While there was plenty of red across the broader market on Saturday, Ripple’s XRP continued to find support, eating into Bitcoin’s dominance, which slipped further through the day, sitting at 51.7% at the time of writing, the cryptomarket’s market cap holding relatively steady at $223.97bn.

Bitcoin may hold on to the number 1 spot by market cap, but the week’s moves could see Ripple’s XRP move into 2nd place, Ethereum’s market cap just 1.6bn larger than Ripple’s XRP.

On the news wires, it was a relatively quiet day, providing little incentive for investors to support a second consecutive rally for Bitcoin and the broader market, investors now looking ahead to the anticipated rollout of rules and regs that should ultimately culminate in an inflow of much needed institutional money through various products including Bitcoin ETFs, one of which is pending an SEC decision and is expected to be approved by March of next year, if not sooner.

The only question is how far Bitcoin will slide upon the introduction of rules and regs, the uncertainty the main reason behind Bitcoin’s failure to begin reversing the extended bearish trend formed back at early May’s swing hi $9,999.

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At the time of writing, Bitcoin was down 0.11% to $6,715.4, with Bitcoin pulling back from a start of a day morning high $6,735.2 to a morning low $6,690 before recovering $6,700 levels.

The early moves left the day’s major support and resistance levels left untested, with Bitcoin also falling short of the 23.6% FIB Retracement Level of $6,757.

For the day ahead, holding on to $6,700 levels through the morning would support a run at the 23.6% FIB Retracement Level of $6,757 to bring $6,800 levels and the day’s first major resistance level at $6,878.6 into play, though we can expect Bitcoin to face plenty of resistance on any attempted break out from the 23.6% FIB Retracement Level to pin Bitcoin back from any run at $7,000 levels.

Failure to hold on to $6,700 levels could see Bitcoin fall back through the morning low $6,690, while we would expect Bitcoin to steer clear of $6,500 levels and the day’s first major support level at $6,539.9, barring particularly negative news hitting the wires.

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