Bitcoin Bulls in Dire Need of a Weekend Rally

Bitcoin fell by 1.5% on Friday, following Thursday’s 1.05% decline, to end the day at $7,420.1, with 5 consecutive days of losses leaving Bitcoin down 9.73% for the current week, Monday through Friday.

A start of the day slide did the damage on Friday, with Thursday’s sell-off continuing into the early hours, Bitcoin falling through the first major support level at $7,413.67 and second major support level at $7,300.33 to an intraday low $7,282.1 before recovering to hit $7,500 levels by mid-afternoon.

Bitcoin was unable to hold on to $7,500 levels, with a pullback to $7,400 levels by the day’s end to call on support at the 38.2% FIB Retracement Level of $7,456 testing investor resilience ahead of the weekend.

In spite of the week’s heavy losses, Bitcoin’s recovery to $7,400 levels and hold at around the 38.2% FIB Retracement Level of $7,456 kept the near-term bullish trend intact, though pressure remains on the bulls as the broader market frets over the outlook from a regulatory perspective and considers whether the SEC will eventually be willing to approve Bitcoin ETFs to begin bringing a greater inflow of capital to support Bitcoin and the broader market.

On the day, there was no particularly negative news to influence the cryptomarket, which saw some of the majors make up ground on Bitcoin, though the there was no escaping losses through the week.

The Bitcoin bulls will be looking for a weekend rally to cut the deficit from the week and bring an end to the string of losses that has seen Bitcoin end the day in the red on 8 of the last 10 days.

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At the time of writing, Bitcoin was up 0.63% to $7,466.8, with Bitcoin recovering from an early pullback to a morning low $7,390.1 that saw Bitcoin fall through the 38.2% FIB Retracement Level of $7,456, before support kicked in at sub-$7,400 levels, the morning low steering clear of the first major support level at $7,290.37.

An early morning high $7,488.5 saw Bitcoin fall short of the first major resistance level at $7,541.57 and continue to fall well short of the 23.6% FIB Retracement Level of $7,857.

For the day ahead, a move back through the morning high would support another run at $7,500 levels to bring the first major resistance level at $7,541.57 into play, with a hold above the 38.2% FIB Retracement Level of $7,456 key through the morning to support of a bullish second half of the day.

Failure to break through to $7,500 levels by the early afternoon could see Bitcoin slide through the 38.2% FIB Retracement Level of $7,456 to bring sub-$7,400 levels back into play, while we will expect Bitcoin to steer clear of the first major support level at $7,290.37 on the day.

Following a heavy loss through the week, a weekend rally is going to be needed to shake off the market jitters from last week’s news, though we can expect more in the week ahead, particularly from South Korean regulators.

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