Bitcoin – Bulls Hold on to $7,000 with $7,300 the next Target

Bitcoin gained 3.04% on Tuesday, following on from Monday’s 2.91% rise and the previous two weeks of gains, to end the day at $7,081.1.

A relatively range bound start to the day saw Bitcoin steer clear of the day’s major support and resistance levels until a late morning rally, Bitcoin breaking through to $7,000 levels and the day’s first major resistance level at $7,011.9 and second major resistance level at $7,121.8 to a morning high $7,126.1.

Sub-$7,000 support held Bitcoin back from a reversal through the afternoon, with Bitcoin breaking back through the second major resistance level at $7,121.8 with a late in the day intraday high $7,127.9, before easing back to sub-$7,100 levels by the day’s end.

It was Bitcoin’s first close at $7,000 levels since 5^th August, with the moves through the start of the week seeing Bitcoin begin to form a near-term bullish trend, though a break through the 38.2% FIB Retracement Level of $7,376 would be needed to begin reversing the extended bearish trend formed back at 5^th May’s swing hi $9,999.

The recent moves have come in spite of lingering concerns over the planned roll out of cryptomarket rules and regulations by the G20, more heavy handedness by the Chinese government and the SEC’s rejection and review of 9 Bitcoin ETF applications last week.

A fall in short positions, according to last week’s CFTC figures provided some early signs that the extended bearish trend may be coming to an end, supporting the start of the week gains, though much will continue to depend on regulators.

Expectations are that the SEC will approve a number of Bitcoin ETFs in the coming months that limited the damage following the SEC decision last week, which does continue to leave Bitcoin and the broader market exposed heavily to regulatory risk over the near-term.

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At the time of writing, Bitcoin was 0.34% to $7,055.6, in what’s been another relatively range bound start to the day.

An early pullback saw Bitcoin fall from a morning high $7,088.8 to a $7,021.3 low before recovering, the moves through the early part of the morning leaving the day’s major support and resistance levels untested.

For the day ahead, a hold above $7,027 would support a recovery later in the day to bring $7,100 levels and the day’s first major resistance level at $7,182 into play, with the Bitcoin bulls likely to be eyeing $7,300 levels and the 38.2% FIB Retracement Level of $7,376. An early move through to $7,100 levels could see Bitcoin knocking on the door of $7,300 levels should the news wires remain friendly.

Failure to hold above $7,027 could see Bitcoin pullback through the morning low $7,021.3 to test the day’s first major support level at $6,926.1, with any Bitcoin decline likely to gather momentum should support at $7,000 fail to kick in.

Elsewhere, it was red across the board, with NEO and LSK seeing the heaviest losses through the morning, the pair down 4.44% and 4.95% respectively.