Bitcoin Bulls in Control as Bitcoin Moves Clear of $7,000

Bitcoin gained 3.71% on Monday, reversing Sunday’s 1.47% decline, to end the day at $7,069.13, bringing an end to 3 consecutive days of sub-$7,000 closes.

Bitcoin enjoyed a solid start to the day, recovering from a late sell-off on Sunday, with the moves through Monday having an upward bias with limited sell-off, as sentiment towards the outlook for Bitcoin and the rest of the cryptomarkets improved through the day.

An intraday low $6,740.67 struck in the early part of the morning was the only downside for Bitcoin investors to manage through the day, with the morning low steering clear of the day’s first major support level of 6,486.94, while a late in the day $7,106.5 moved through the 23.6% FIB Retracement Level of $7,087.7 to test the day’s first major resistance level of $7,104.59.

While Bitcoin failed to hold above the 23.6% FIB Retracement Level by the day’s end, the lack of an end of day sell-off supported a bullish start to the day today, as investors begin to consider the possibility that a regulatory overhaul of the cryptomarket may not be as bad as had initially been considered, with a blended view on the cryptomarket across key governments and regulators likely to be somewhat diluted compared with some of the harsh commentary and views that had hit the news wires and pinned back the cryptomarkets through the 1^st quarter.

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At the time of writing, Bitcoin was up 3.88% to $7,326.21, moving clear of the $7,000 psychological level that had Bitcoin lacking direction through the weekend.

This morning’s $7,001.28 low avoided the day’s first major support level of $6,850.56, with upbeat sentiment across the market giving plenty of support at the $7,000 level this morning. It’s been upwards since this morning’s low, with Bitcoin rallying to an intraday high $7,394.65 late this morning, breaking through the day’s 1^st major resistance level of $7,197.1 and 2^nd resistance level of $7,325.07.

Of greater significance will be Bitcoin’s move back through the 23.6% FIB Retracement Level of $7,078.7. With Bitcoin facing little selling pressure, a move through to the 38.2% FIB Retracement Level of $7,481.8 is in play, with any breakout supporting the view that Bitcoin had bottomed out over the weekend, investors turning the page going into the 2^nd quarter.

We will expect the cryptomarket to remain particularly sensitive to the news wires however, which requires some caution as Bitcoin makes its move.

Failing to move through to the day’s 38.2% FIB Retracement Level would likely see some selling pressure late in the day, pulling Bitcoin back to sub-$7,200 levels, while a hold at $7,000 is likely barring any material negative news through the afternoon.

It’s certainly looking bullish and side lined investors are likely to get drawn in as resistance levels pass in hope of a material rebound.

Looking across at the Cboe Bitcoin Futures, the April contract was up $355 to $7,340 riding on Bitcoin’s coattails.

Elsewhere, NEM’s XEM was leading the way amongst the majors, up 10.26%, with all of the majors in positive territory through the morning.

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