Bitcoin Bulls Look to Take Back Control after the BCH Hard Fork
Bitcoin slipped 1.47% on Wednesday, following Tuesday’s 2.41% fall, to end the day at $8,344.1.
It was a 3rd consecutive day in the red for Bitcoin. An early morning intraday low and new swing lo $8,100 saw Bitcoin sliding through the 1st major support level at $8,299.43 and the second major support level at $8.136.87, before a shift in sentiment across the broader market saw Bitcoin move through to a middle of the day high $8,426.3 that led to a second sell-off to an afternoon low $8,121.7. The cryptomarket settled in the afternoon, with Bitcoin recovering to $8,300 levels by the day’s end.
The new swing lo and slide through key support levels left the near-term bearish trend formed at 5th May’s swing hi $9,999 intact, with Bitcoin having now failed to touch $9,000 levels for a 5th consecutive day.
Things were not much better for Bitcoin’s rival, Bitcoin Cash, regulatory risk continuing to overshadow all else, though things could have been much worse when considering the early April lows that had come off the back of regulatory noise and fears of a clamp down on the cryptomarket and exchanges.
At the time of writing, Bitcoin was up 0.03% to $8.338.8 in what’s been another choppy start to the day, the cryptomarkets unable to reboot from the day before with the 24 hour cycle of trading.
An early morning intraday high $8,482.2 came up short of the day’s first major resistance level of $8,524.53 and 23.6% FIB Retracement Level of $8,548, leading to a reversal and a morning low $8,274.2 in the last hour, as early gains coming off the back of an afternoon recovery on Wednesday reversed.
While the morning’s low held well above the day’s first major support level at $8,131.83, a lack of support at $8,300 will likely see Bitcoin test the first major support level to bring $7,000 levels into play, the bulls having battled for a number of days now to hold Bitcoin up and prevent major losses.
For some of the more bullish, Bitcoin’s resilience and relative stability at current levels could be seen as a buying opportunity, though much will depend upon sentiment across the broader market, Bitcoin having been unable to direct the markets of late, regulatory risk having played a hand in market dynamics this year.
For the day ahead, a move back through to $8,400 levels would support a run at the day’s first major resistance level at $8,524.53 and the 23.6% FIB Retracement Level of $8,548, though recent moves would continue to suggest that $8,500 levels will likely be out of reach unless Bitcoin moves early.
Failure to break through to $8,400 levels and take a run at the morning high $8,482.2 will be a negative for Bitcoin later in the day, a pullback through to $8,100 levels and the day’s first major support level at $8,131.83 bringing sub-$8,000 support levels into the frame.
Elsewhere, Bitcoin Cash and Stellar’s Lumen were amongst the trend setters, with gains of 0.98% and 0.23% respectively, while Monero led the way at the time of writing, up 1.0%.
Its set up for an interesting day ahead, with investors needing to keep an eye on the news wires and key support and resistance levels in what’s likely to be a choppy day, broader market sentiment also a factor to consider.