Bitcoin – Bears Take Control After Strong Gains Over the Weekend

Profit taking hits Bitcoin in the early hours of Monday, giving the bears some respite, following a solid weekend of gains.
Bob Mason
Bitcoins etf

Bitcoin gained 1.43% on Sunday, following on from Saturday’s 2.68% rise, to end the week up 9% to $7,300.2.

A bullish morning saw Bitcoin recover from a start of a day dip to an intraday low $7,135.3 to an intraday high $7,429.2, the moves through the morning seeing Bitcoin break through the day’s first major resistance level at $7,310.57 and of greater significance, the 38.2% FIB Retracement Level of $7,376 to test resistance at the second major resistance level at $7,419.53.

Bitcoin failed to hold on to $7,400 levels and above the 38.2% FIB Retracement Level, with selling pressure seeing Bitcoin slide back to an afternoon low $7,185 before steadying, with sub-$7,200 support levels kicking in to drive Bitcoin back through to $7,300 levels by the day’s end.

In spite of the gains through the weekend and a 3rd consecutive weekly rise, Bitcoin’s failure to hold above the 38.2% FIB Retracement Level of $7,376 supported the extended bearish trend formed back at early May’s swing hi $9,999, with the Bitcoin bears still enjoying some influence as investors continue to face the prospects of a material shift to the cryptomarket’s regulatory landscape.

The gains through the weekend were supported by the news wires that remained relatively silent on the regulatory front, with the Bitcoin bulls resuming the talk of Bitcoin hitting $20,000 levels and beyond by the end of the year, though direction through the final quarter will ultimately be hinged on the SEC’s review of the 9 Bitcoin applications it recently rejected and the G20s rollout of unified rules and regulations for the broader cryptomarket.

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At the time of writing, Bitcoin was down 1.15% to $7,215.8, with Bitcoin sliding from a start of a day $7,324.8 high to a morning low $7,208.3, the moves through the early part of the day coming off the back of some profit taking, Bitcoin having found strong support through the weekend.

The early morning highs and lows left the day’s major support and resistance levels untested, with the bulls likely to be looking for a move back through to $7,400 levels to raise the prospects of a bearish trend reversal through the week.

For the day ahead, a move back through to $7,300 levels would support a run at Sunday’s $7,429.2 high to bring the day’s first major support level at $7,441.17 into play, though Bitcoin will need to move through to $7,300 and hold by late morning to support an afternoon rebound.

Failure to move back through to $7,300 levels could see Bitcoin take a bigger hit later in the day, with sub-$7,200 levels and the day’s first major support level at $7,147.27 in play should sentiment fail to improve through the late morning.

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