The Bitcoin Bulls Fight on in the Face of Adversity

Wednesday was certainly a dark day for Bitcoin and cryptomarket jitters were evident from the very early hours of the day, as investor focus shifted towards Congress.

The jitters were certainly justified, with members of the Financial Services Committee kicking off the session with some quite damming views on the cryptomarket, not to mention the Sub-Committee Chairman’s desire to hit the cryptomarket with significantly more oversight than is currently in place.

Unexpected news events that caught the cryptomarket off guard included Google’s ban of anything crypto, including the banning of ads for ICOs, cryptocurrencies, wallets and exchanges and then, to make matters worse, an Allianz report assigning Bitcoin with an intrinsic value of zero.

When considering how the cryptomarkets responded to the South Korean regulatory noise earlier in the year, the market stood up pretty well, with Bitcoin ending the day down 10.32% to $8,270.4.

The day’s intraday low $7,948 tumbled through the 1^st and 2^nd major support levels of the day, while managing to avoid the 3^rd support level of $7,865.35. Perhaps there was some consolation in the fact that Bitcoin managed to recover to $8,000 levels by the close, well above the $5,920.72 low of the year, hit back on 6^th February.

Talks of bubbles will undoubtedly do their rounds again in the coming days, but Bitcoin and the rest of the clan have yet to completely disappear in spite of the bashing that the cryptocurrencies have received from lawmakers this year. While cryptomarket troubles may be far from over, there will be some comfort to those investors able to withstand the heightened volatility.

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This morning started off on another sour note, with Bitcoin sliding to an intraday low $7,682, testing the day’s first major support level of $7,652 in the early part of the day. At the time of writing, Bitcoin was down 3.6% to $7,901.39, with support kicking in at current levels as investors assess the damage.

While we will expect Bitcoin to find buying interest through the day, Bitcoin will need to move to $7,900 levels and push through to $8,000 to restore some degree of confidence in the market and give investors a sense that sub-$6,000 levels may be avoided this time around.

With major resistance levels some way off, there’s certainly scope for a momentum driven rebound, though recovering Wednesday’s losses may be a stretch, with Bitcoin having seen a bearish trend kick in back on Monday morning.

Failure to break through to $8,000 levels through the middle part of the day could ultimately see Bitcoin pullback to this morning’s low and test the day’s major support levels, with fear of sub-$6,000 likely to build.

Elsewhere in the markets, the week’s trailblazer NEM’s XEM was down 10.69% this morning, with Stellar’s Lumen and Cardano down 8.28% and 9.17% respectively, the trio known to move in the extremes at times of stress.

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