Bitcoin – Bears Prize Back Control, sub-$6,400 Levels Being Eyed

Bitcoin fell by 1.89% on Monday, reversing most of the previous week’s gains, to end the day at $6,583, with Bitcoin seeing red for a 3^rd consecutive day.

A broad based market sell-off saw Bitcoin pullback from an early morning high $6,721.7 to a morning low $6,580, the morning slide seeing Bitcoin fall through the day’s first major support level at $6,652.37 and second major support level at $6,594.73 before steadying.

Recovering through the major support levels to an afternoon high $6,666 was the last bullish move of the day, with Bitcoin sliding back through the first major support level and second major support level to a late in the day intraday low $6,503.2.

The reversal through the day came in spite of the news wires remaining relatively quiet, with the bad news that hit the crypto news wires the previous week having been masked by the news of wider adoption of Ripple’s cross-border payment platforms.

Bitcoin’s dominance moved back up to 53% at the time of writing, the sell-off in Ripple’s XRP contributing to the uptick, with the cryptocurrency total market cap falling back to $211.7bn.

For the Bitcoin bears there are a number of reasons for the continued reversals, with market concerns over an anticipated shift in the regulatory landscape next month across key cryptocurrency jurisdictions and the SEC’s pending decision on the VanEk Bitcoin ETF the near-term factors driving the market, outside of news of hacks and bugs that have become less influential on the broader market.

Last week’s Commitments of Traders report continued to show that the balance of power remained in favour of the bears, with long v shorts sitting at 2,302 v 3,620, a shift in balance unlikely to materialise until one, if not both of the key uncertainties, have been addressed.

Get Into Cryptocurrency Trading Today

At the time of writing, Bitcoin was down 1.96% to $6,456.2, with late Monday’s sell-off continuing into the early hours of this morning, Bitcoin falling from a start of a day morning high $6,585.1 to a morning low $6,403.8 before finding support.

The moves through the early morning saw Bitcoin fall through the day’s first major support level at $6,483.57, with Bitcoin managing to steer clear of sub-$6,400 levels and the day’s second major support level at $6,384.13.

For the day ahead, a move back through the morning high to $6,600 levels would support an afternoon recovery, though with the bears in full control at the start of the week, resistance will likely pin Bitcoin back from any run at $6,700 levels to test the day’s first major resistance level at $6,702.07.

Failure to move back through to $6,500 levels could see Bitcoin take a bigger hit later in the day, with a fall through the morning low $6,403.8 bringing sub-$6,400 levels and the day’s second major support level at $6,384.13 into play before any recovery.