Bitcoin – Bulls Fail to Deliver as the Bears Eye $6,300
Bitcoin fell by 1.2% on Tuesday, following Monday’s 0.34% decline, to end the day at $6,522.9, with the day’s decline marking it a 4th day in the red out of the last 5.
A positive start to the day saw Bitcoin come within reach of the first major resistance level at $6,673, with an intraday high $6,644.7 before succumbing to pressure from a broader market reversal that saw Bitcoin slide through the morning and early afternoon to an intraday low $6,467.9.
Falling through the day’s first major support level at $6,513 to come within range of the second major support level at $6,426.5, Bitcoin managed to bounce back to an afternoon high $6,589.2 before being hit by a late in the day pullback to leave Bitcoin with its heaviest lost since 25th September’s 2.15% slide.
In spite of the day’s reversal, Bitcoin’s dominance picked up to 51.9%, with some of the crypto majors seeing more material losses through the day, leading to the cryptomarket cap falling back to $218.08bn.
News of market manipulation by the WSJ would not have done Bitcoin and the broader market any favours, investors well aware that the SEC’s main concern over approving Bitcoin ETFs revolves around price manipulation.
Other negative news through the day included reports of New Zealand passing new laws that allows customs to gain access to traveller passwords for electronic devices or impose a fine. While the news is less related to traveller’s investment holdings and more to do with data storage, the wires took this as a potential threat to the privacy enjoyed by cryptocurrency investors.
Of greater concern will be the continued reports of price manipulation, which may pin back the hopes of Bitcoin ETF approvals near-term, the SEC’s position on Bitcoin ETFs considered a key driver for Bitcoin and the broader market, alongside sentiment towards the regulatory landscape.
At the time of writing, Bitcoin was down 1.17% to $6,451.1, Tuesday’s late reversal continuing into the early hours of this morning. Bitcoin has fallen from a start of a day high $6,545.1 to a morning low $6,424.6, sliding through the first major support level at $6,445.63 before finding support.
For the day ahead, a move back through to $6,500 levels would signal a possible afternoon rebound, with Bitcoin needing to move through the morning high $6,545.1 to bring $6,600 levels and the day’s first major resistance level at $6,622.43 into play, though we can expect Bitcoin to face plenty of resistance on any run at $6,600 levels later in the day.
Failure to move back through to $6,500 levels could see Bitcoin take a bigger hit later in the day, a pullback through the morning low $6,424.6 likely to bring $6,300 levels and the day’s first second major support level at $6,368.37 into play before any recovery, with the news wires certainly capable of delivering a more material decline.