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Bitcoin – Bulls in Search of the Floor as the Bears Retain Control

By:
Bob Mason
Published: Sep 26, 2018, 04:35 UTC

Bitcoin sees red again in the early hours, but could make a move later in the day if there's a recovery to $6,400 levels by late morning.

Bitcoin Board

Bitcoin fall by 2.15% on Tuesday, following a 1.89% decline on Monday, to end the day at $6,443.4, the day’s fall marking a 4th consecutive day in the red.

Negative sentiment across the cryptomarket weighed, with Monday’s late sell-off continuing into Tuesday morning, Bitcoin falling through the day’s first major support level at $6,483.57 to a morning low $6,369.4, calling on support at the second major support level at $6,384.13 to move back through the second major support level to $6,400 levels.

A late afternoon pullback saw Bitcoin slide back through the day’s second major support level at $6,384.13 to an intraday low $6,328 before bouncing back in the final hour.

Contributing to the negative sentiment that has weighed on Bitcoin and the broader market, exception to the rule being Ripple’s XRP, was news of Mt Gox’s bankruptcy trustee selling around 25,000 Bitcoin Cash and Bitcoins, which had been anticipated in the week’s prior.

With little else for investors to go on and concerns continuing to linger over the SEC’s Bitcoin ETF decision and the G20’s planned roll out of unified rules and regulations, there was little incentive for investors to jump back in.

Things were a little different for Ripple’s XRP late in the day on Tuesday, with news of Coinbase looking to changing its listing rules driving Ripple’s XRP back into positive territory, Coinbase having previously refused to list Ripple’s XRP. Hopes are that the change in approach will lead to its inclusion.

The broader market’s losses through the day saw the total market cap pullback to $209.93bn, with Bitcoin’s dominance holding at 53%. For Ripple’s XRP and the run at the number 2 spot by market cap, Tuesday’s late rally narrowed the gap to $1.8bn.

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At the time of writing, Bitcoin was down 0.7% to $6,397.7, with Bitcoin reversing Tuesday’s end of day partial recovery in the early hours, falling from a start of a day high $6,443.5 to a morning low $6,382.5 before steadying, the days major support and resistance levels left untested.

For the day ahead, a move back through to $6,400 levels and a hold above $6,450 would support a run at $6,500 levels to bring the day’s first major resistance level at $6,576.33 into play, though for Bitcoin to find strong support through the second half of the day, a move through to $6,450 would be needed by late morning.

Failure to move through the morning high $6,443.5 to $6,450 could see Bitcoin investors face a second wave of selling pressure later in the day, with a pullback through the morning low $6,382.5 bringing the day’s first major support level at $6,319.23 into play before any recovery, Bitcoin unlikely to test sub-$6,300 support levels barring negative news hitting the wires.

It was a sea of red across the majors in the early hours, with Cardano’s ADA and Stellar’s Lumen seeing the heaviest losses at the time of writing, Ripple’s XRP recovering heavier losses from the start of the day.

BTC/USD 26/09/18 Daily Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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