Bitcoin – Bulls in Search of a Weekend Rally

Bitcoin in positive territory early, while trailing the majors, with a hold on to $7,000 levels needed to avoid a slide later in the day.
Bob Mason
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Bitcoin gained 0.43% on Friday, partially reversing Thursday’s 0.76% fall, to end the day at $7,015.8.

The moves through the week, left Bitcoin down 9.4% for the month of August, whilst up 4.74% for the current week, Bitcoin looking to make a 3rd consecutive week of gains that come off the back of a particularly bearish start to the month of August.

A choppy start to the day saw Bitcoin pullback from a morning high $7,019 to an intraday low $6,881.6 before recovering, Bitcoin managing to steer clear of the day’s first major support level at $6,838.4.

Tracking the broader market, an early afternoon recovery saw Bitcoin break back through to $7,000 levels with an intraday high $7,100, Bitcoin testing the day’s first major resistance level at $7,096.3 before falling back to sub-$7,000 levels.

A late recovery supported a move back through to $7,000 levels by the day’s end, the mid-week reversal on news of EU finance ministers planning to discuss cryptocurrencies at the next EU finance meeting leaving Bitcoin struggling at $7,000, having pulled back from the week’s $7,139.4 high struck on Wednesday.

For the Bitcoin bulls, while holding onto $7,000 levels and well above the 23.6% FIB Retracement Level of $6,757 is the positive, a failure to break through to $7,300 levels to attempt a break out from the 38.2% FIB Retracement Level of $7,376 leaves the extended bearish trend, formed at early May’s swing hi $9,999, firmly intact.

On the news wires, there was nothing particularly dire to limit gains on the day, the relative silence providing some degree of support for Bitcoin and the broader market going into the weekend.

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At the time of writing, Bitcoin was up 0.65% to $7,060, with Bitcoin moving from a start of a day $7,011.3 low to a morning high $7,067, moves through the early morning leaving the day’s first major support level at $6,898.27 and the day’s first major resistance level at $7,116.67 untested.

For the day ahead, a hold on to $7,000 levels would be needed through the morning to support a break through to $7,100 levels to bring the first major resistance level at $7,116.67 into play, with Bitcoin likely to face more resistance on any run at $7,100 levels, Bitcoin having been unable to hold on to $7,100 levels on Friday.

Failure to hold on to $7,000 levels through the morning and early afternoon could see Bitcoin cough up the morning gains and pullback through to $6,900 to bring the day’s first major support level at $6,878.27 into play.

Moves through the morning will likely be decisive for Bitcoin as investors gauge whether the early gain was just a continuation of Friday afternoon’s recovery or a shift in sentiment following the mid-week reversal.

Elsewhere in the cryptomarket, EOS, DASH and NEO were the front runners amongst the majors, with in excess of 3% gains through the early morning, leading to Bitcoin’s dominance easing back to 52.8% at the time of writing.

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