The Bitcoin Bears Take Over the Reins

Bitcoin slid 3.3% on Thursday, more the reversing Wednesday’s 1.48% gain, to end the day at $9,010.8.

Wednesday’s rise had provided the Bitcoin bulls with hopes of a late in the week rally to bring $10,000 levels back into play going into the weekend, but a range bound first half of the day ultimately weighed, with Bitcoin taking a late in the day fall.

Bitcoin slid from $9,361.4 in the late afternoon to an intraday low $9,003, falling through the 23.6% FIB Retracement Level of $9,173.3 and the day’s first major support level at $9,074.93, with support at $9,000 needed to avoid a pullback to sub-$9,000 levels for a 2^nd consecutive day.

In spite of the extended bullish trend that had been formed at 6^th April’s swing lo $6,500.2, moves since 5^th May’s swing hi $9,999 have been testing the bullish trend and Thursday’s slide affirmed the formation of a near-term bearish trend with Tuesday’s swing lo $8,980 replaced by this morning’s low $8,870, Bitcoin’s failure to break through to $10,000 levels at the start of the month doing the damage.

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At the time of writing, Bitcoin was down 1.32% to $8,899.2, with Thursday’s late in the day sell-off spilling into the early hours of this morning.

A start of the day high $9,018.1 was all that the Bitcoin bulls had to hold on to, with the day’s first major resistance level at $9,268.8 and seller appetite at the 23.6% FIB Retracement Level of $9,221 left untested.

An early slide through to a morning low $8,870 tested the day’s first major support level at $8,877.9, the early move reaffirming the near-term bearish trend formation.

For the day ahead, Bitcoin will need to break back through to $9,000 levels and make a run at the day’s first major resistance level at $9,268.8 to shift the negative sentiment that has plagued Bitcoin and the broader market through the week, though with the bears in control, selling pressure at the 23.6% FIB Retracement Level of $9,221 will need to be overcome.

Bitcoin managed to avoid tumbling back to sub-$6,000 levels in the last bearish trend that supported a run through to the swing hi $9,999. This time around, support will be called upon once more and with the regulatory chatter beginning to build ahead of an expected classification of the respective cryptocurrencies and roll out of regulations, things could turn quite bearish before recovering.

Failing to move through to $9,100 levels later this morning will likely place further downside pressure on Bitcoin, which will likely bring the day’s second major support level at $8,745 into play, a hold at $9,000 levels by the day’s end a must for the Bitcoin Bulls. Bitcoin last closed out the day at sub-$9,000 back on 28^th April.

Elsewhere, Bitcoin Cash coughed up early gains to sit at sub-$1,500 levels with a 2.5% slide, while Cardano’s ADA saw the largest slide early on, down 4.94% to $0.2779 at the time of writing, the market going through yet another sell-off ahead of the weekend.

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