Bitcoin – Bulls Eye $6,400 Levels EarlyIt’s a positive start to the week for Bitcoin, which recovered from a early dip to $6,200 levels, Bitcoin showing some signs of life early on.
Bitcoin gained just 0.02% on Sunday, following a 0.54% rise on Saturday, to end the week down 4.37% at $6,327.6, the hold on Sunday seeing Bitcoin buck the trend across the broader cryptomarket on the day.
While ultimately flat for the day, it was a choppier day than normal for Bitcoin, with volatility creeping back in, Bitcoin rallying in the early hours of the day to an intraday high $6,399.3, the early moves seeing Bitcoin break through the first major resistance level at $6,346.37 and second major resistance level at $6,366.73 to hit resistance at $6,400 before pulling back to $6,350 levels.
Finding support through the afternoon, Bitcoin broke back through the second major resistance level at $6,366.73 to match the morning intraday high $6,399.3, with resistance at $6,400 hitting Bitcoin for a second time.
A broad based market sell-off late in the day saw Bitcoin slide back to an intraday low $6,302.5 before steadying, with Bitcoin finding enough support to avoid sub-$6,300 levels and the day’s first major support level at $6,292.97.
On the news front, reports of the IMF identifying the cryptocurrency market as a possible threat to financial stability will have contributed to the late Sunday reversal. The report comes after the FSB report that reviewed the cryptocurrency market and noted that there was no immediate threat to the global financial system, one that was considered as a positive outcome for the cryptomarket.
The latest IMF findings will cast some doubt on how the G20 and other economies will now view the market and of greater significance, what level of monitoring and what rules and regulations will be required to ensure that there is impact on financial stability, particularly in the event of a cryptomarket collapse.
At the time of writing, Bitcoin was up 0.74% to $6,383.4, with Bitcoin recovering from a start of a day morning low $6,294.6 to a morning high $6,390.6 before steadying, the early morning recovery seeing Bitcoin break through the day’s first major resistance level at $6,383.77 before reversing, the day’s major support levels left untested early on.
For the day ahead, a hold above $6,343.13 through the morning would support another run at the first major resistance level at $6,383.77 to bring $6,400 levels into play, while Bitcoin will likely continue to face plenty of resistance at $6,400 to pin back any more material gains through the day, in the event of a broad based market rally.
Failure to hold above $6,343.13 through the morning could see Bitcoin hit reverse later in the day, a pullback through to $6,200 levels likely to bring the day’s first major support level at $6,286.97 into play, any more material declines unlikely barring materially negative news hitting the crypto wires.
The hold on Sunday and early gains through the morning has seen Bitcoin’s dominance rise to 54.5%, with the total cryptomarket cap holding on to $200bn