Bitcoin – Bulls Eye $6,400 as Mixed Sentiment Hits the Market

Bitcoin gained 1.31% on Tuesday, partially reversing Monday’s 3.92% fall, to end the day at $6,334.

A relatively range bound early morning saw Bitcoin move from a start of a day intraday low $6,228.1 to a morning high $6,291.5 before easing back, $6,300 back to being the line in the sand for the Bitcoin bulls following Monday’s reversal.

Tracking the broader market, a mid-day rally saw Bitcoin move through to an early afternoon intraday high $6,384 before easing back to sub-$6,300 levels, late in the day support seeing Bitcoin recover to $6,300 levels by the day’s end.

While Bitcoin has tended to be the barometer for the broader cryptomarket, Ripple’s XRP may have stolen the show on Tuesday, with news of Saudi bank the National Commercial Bank adopting the Ripple platform driving sentiment through the day.

Adding to the upside for Bitcoin and the broader market were comments from the SEC Commissioner that were crypto friendly, the Commissioner stating that the government shouldn’t pin back the expansion of the cryptomarket by limiting the release of new crypto products.

While U.S Commissioner Peirce is considered to be on the “For” side of the crypto camp, the comments were certainly supportive following a string of Bitcoin ETF applications being declined.

As the markets prepare for the Mt.Gox flood of cryptocurrencies, a Bitcoin ETF approval and inflow of institutional money would be quite timely, particularly when considering the fact that institutional money should smoothen out the volatility, though ultimate influence may well reside with the Bitcoin whales.

Of greatest significance on the day however was a sign that product differentiation and success could deliver price direction, with Ripple’s XRP investors being rewarded for the successes of the Ripple team and the continued adoption of Ripple’s platform by financial institutions the world over.

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At the time of writing, Bitcoin was up 0.26% to $6,352.1, a relatively choppy start to the day seeing Bitcoin pullback to a morning low $6,315 before moving through to a morning high $6,375.1, the early moves leaving the day’s major support and resistance levels untested.

For the day ahead, holding on to positive territory through the morning will be key for the Bitcoin bulls, a hold above $6,335 supporting a run at $6,400 levels later in the day, though for Bitcoin to break out from current levels, the news wires will also need to remain crypto friendly, SEC Commissioner commentary having provided some much needed support on Tuesday.

Failure to hold above $6,335 could see Bitcoin pullback through the morning low $6,315 to bring sub-$6,300 levels and the day’s first major support level at $6,246.73 into play before any recovery, the day’s second major support level at $6,159.47 unlikely to be tested barring particularly negative news hitting the crypto wires.