Bitcoin – Bulls Give Up $6,000 as the Market TumblesBitcoin slumps to sub-$6,000 levels for the first time since July and things may well get worse before they get better, sub-$5,000 still on the cards.
Bitcoin fell by 1.11% on Monday, reversing most of Sunday’s 1.24% gain, to end the day at $6,243.9, the loss on the day particularly mild relative to the other crypto majors.
Following a range bound start to the day, a broad based market rally saw Bitcoin break through the day’s first major resistance level at $6,485.4 to a late morning intraday high $6,548.3 before becoming victim to a broad based market sell-off through the 2nd half of the day.
The second half of the day’s sell-off saw Bitcoin slide through the first major support level at $6,148.4 to an intraday low $6,137.6, before recovering to $6,200 levels by the close.
While the news wires were on the quieter side, Bitcoin’s resilience to the latest market sell-off that continues to be attributed to the SEC’s decision to delay some key Bitcoin BTF approvals, has been impressive.
For some, the recent moves seen in Bitcoin and rising dominance may support the argument that Bitcoin could be the new gold, though time will tell, Bitcoin having had a tendency to lag the markets in the past.
When seeing Bitcoin’s dominance rise to 53.5%, at the time of writing, it’s been an impressive return when considering Bitcoin’s dominance stood at a lowly 33.65% in the 1st week of January of this year.
The Turkish Lira collapse has certainly brought the debate back to the table, with Bitcoin’s 1.11% fall on Monday being more moderate than spot gold’s 1.41% fall, particularly when Bitcoin’s decline came amidst a mass crypto market sell-off.
Certainly, with governments imposing restrictions on citizens converting to Dollar or gold may make Bitcoin all the more attractive, though Bitcoin volatility will leave many tentative to put life savings into the unknown.
At the time of writing, Bitcoin was down 4.98% to $5,940.6, with Monday’s afternoon sell-off spilling into the early hours of the morning, Bitcoin sliding through the first major support level at $6,071.57 and second major support level at $5,899.23 to a morning low $5,858.6 before recovering to $5,900 levels.
For the day ahead, a move back through to $6,000 levels and the first major support level at $6,071.57 would support a run at Monday’s $6,137.6 low, while we will expect Bitcoin to fall short of $6,200 levels in the event of a rebound.
Failure to move back through to $6,000 levels will likely see Bitcoin pullback through the second major support level at $5,899.23 to bring $5,700 levels into play, the bears in full control this week and market panic likely to kick in should sub-$5,000 levels look likely in the coming days.
For those who may have entered the market in hope of some protection from sell-offs in the Turkish Lira and other fiat currencies, today’s moves will certainly have been painful, the ongoing volatility throughout the year too great for those looking for protection.