Bitcoin Bulls Jump Ship to Leave the Bears at the Helm

Bitcoin gained just 0.16% on Sunday, following Saturday’s 1.85% fall, to end the week down 13.9% at $7,339.7.

A start of the day slide to $7,220 came off the back of Saturday’s late sell-off, with Bitcoin managing to recover to $7,300 levels before pulling back to an intraday low and new swing lo $7,211.1 in the late morning.

The second half of the day was relatively range bound, with a late afternoon spike seeing Bitcoin strike an intraday high $7,425.4 before an immediate pullback to $7,300 levels, the day’s high falling short of the first major resistance level at $7,535 and well short of the 23.6% FIB Retracement Level of $7,906.4.

The good news for the Bitcoin bulls was avoiding the day’s first major support level at $7,191.9, though the new swing lo and Bitcoin’s range bound afternoon that left the day’s major resistance levels untested will continue to be an issue, sub-$7,000 levels still expected as the extended bearish trend from 5^th May’s swing hi $9,999 continues.

A new week could bring new beginnings for Bitcoin and the cryptomarket, but with no positive news to hit the wires, there remains little reason for a bearish trend reversal, the market in need of a sooner rather than later regulatory revamp in order to remove the uncertainty and move forward.

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At the time of writing, Bitcoin was down 2.03% to $7,190.4, with a Bitcoin move through to a morning high $7,437.7 falling shy of the day’s first major resistance level at $7,439.7, as a cryptomarket sell-off pulled Bitcoin into a nose dive.

Bitcoin fell through the day’s first major support level at $7,225.4 to a morning low and new swing lo $7,142 before finding support, though the negative sentiment across the broader market held investors back from going back in to see a rebound.

For the day ahead, a move back through the day’s first major support level at $7,225.4 would support a run at $7,300 levels and a return to positive territory, while we would expect the day’s first major resistance level at $7,439.7 to remain untested through the day.

With Bitcoin now having failed to test selling pressure at the 23.6% FIB Retracement Level for a 4^th consecutive day, the downward trend in intraday highs continues to suggest that there’s more pain to come for Bitcoin investors before any kind of rebound can be expected.

As the market prepares for the introduction of cryptomarket regulations, it’s likely to be a matter of timing. The longer governments and regulators take to roll out regulations, the more time there is for Bitcoin and the broader market to reverse, which could see price forecasts lowered to sub-$6,000 levels.

Holding on to $7,000 levels near-term will be key for the Bitcoin bulls. Failure to move back through the day’s first major support level could see Bitcoin fall through the day’s second major support level at $7,111.1 to bring sub-$7,000 support levels into play, which would certainly test the remaining bulls’ resilience at the start of the week, with sub-$7,000 levels a distinct possibility today.

Elsewhere in the market, Ethereum, Bitcoin Cash and Cardano’s ADA were the worst hit, with more than 7% losses at the time of writing, with none of the majors able to buck the trend through the early hours of this morning, Bitcoin’s losses being the most modest.

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