Bitcoin Bulls Hold On – Is This The Day of the Rally?

Bitcoin sees red, but not enough to raise the alarm bells, a bounce back into positive territory later this morning supportive of another positive end to the day, though the bears are always lurking , which requires caution.
Bob Mason

Bitcoin gained 1.67% on Monday, following Sunday’s 0.14% fall, to end the day at $6,250.8, the bearish trend having left Bitcoin short of $7,000 levels since an intraday high $7,498.6 back on 11th June.

A particularly range bound morning saw Bitcoin pullback to an intraday low $6,068.5 in the late morning before recovering in the early afternoon, the day’s low holding well above the first major support level at $5,848.83.

The almost immediate bounce back that was seen across the broader market saw Bitcoin hit an intraday high $6,341, which came within reach of the day’s first major resistance level at $6,343.53 before pulling back through the late afternoon.

For the Bitcoin bulls it was another day of struggle, with any attempts at a breakout being met with investors locking in minor gains as Bitcoin continues to fall well short of the 23.6% FIB Retracement Level of $6,874, supporting the extended bearish trend formed at 5th May’s swing hi $9,999.

With the broader market continuing to sit back in anticipation of a roll out of new regs for the cryptomarket, breakouts are likely to remain short lived, though for the Bitcoin bulls, the good news is that Bitcoin has managed to avoid striking a new swing lo, in spite of the persistently negative sentiment across the market.

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At the time of writing, Bitcoin was up 0.13% to $6,255, with Bitcoin managing to recover from a start of the day $6,190 low that came from a continuation of Monday’s late afternoon reversal.

With the day’s low steering clear of the first major support level at $6,099.2, the Bitcoin ship appears to have steadied following last week’s losses, though with a continued failure to break through key resistance levels to make a run at the 23.6% FIB Retracement Level of $6,874, the risk of a reversal is ever present, particularly when considering market sensitivity to regulator chatter.

For the day ahead, a move through the morning’s $6,261.1 high would support a run at the day’s first major resistance level at $6,371.7 to bring $6,400 levels into play, though looking at recent moves, a breakthrough $6,371.7 may prove to be a step too far on the day, the bearish trend continuing to limit the length of any bullish moves.

For the Bitcoin bulls, moving through to $6,300 levels would certainly provide some much needed relief, though it will ultimately boil down to whether Bitcoin can hold on to any significant gains and avoid a reversal.

Elsewhere in the market, Litecoin was looking to buck the trend across the broader market, up 0.04% at the time of writing, with NEM’s XEM leading the day through the morning, up 1.52%.

On the downside, Cardano’s ADA saw the heaviest losses, down 1.27%, with EOS not far behind, down 1.25% at the time of writing, the cryptomarkets having begun to show some divergence of late.

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