Bitcoin – Bulls Losing a Grip as Bitcoin Struggles at $6,600

Bitcoin’s troubles continued on Thursday, with Bitcoin falling by 1.81% off the back of Wednesday’s 0.28% decline, to end the day at $6,613.3.

A relatively bullish start to the day saw Bitcoin break through the 23.6% FIB Retracement Level of $6,757 to strike an early morning intraday high $6,779.9 before hitting reverse and suffering at the hands of a broad based market sell-off, the day’s high falling short of the first major resistance level at $6,794.97.

Tracking the broader market through the day, Bitcoin slid through the day’s first major support level at $6,675.27 and second major support level at $6,566.7 to a late in the day intraday low $6,566.7 before finding support to move back through to $6,600 levels.

The reversal came in spite of a lack of materially negative news hitting the wires through the day, news of a sale of more than 600 confiscated Bitcoins next month, equivalent to $4,000,000, likely to have had some influence on the day, though of greater significance may well have been the tight ranges of late and Bitcoin’s continued failure to break out from the 23.6% FIB Retracement Level of $6,757 to $6,800 levels.

For the current month, Bitcoin has only had 5 moves of 1% or more in either direction, which is significantly fewer than the 11 more than 1% swings in either direction through the first 18 days of September. The lack of volatility suggested that a move was imminent and, with the lack of news from the G20 on its planned roll out of rules and regulations and the pending SEC decision on the Bitcoin EFT applications, the lack of progress and the lack of a breakout has ultimately weighed.

With Bitcoin back at sub-$6,600 levels for the first time since Monday’s spike, Bitcoin and the broader market are in dire need of a catalyst to break the current ranges and lack of volatility. Positive news from the G20 and the SEC would certainly do the trick.

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At the time of writing, Bitcoin up 0.11% to $6,620.8, with moves through the early morning seeing Bitcoin hit a morning high $6,639.5 before pulling back to a morning low $6,592.7, the day’s major support and resistance levels left untested early on.

For the day ahead, a move back through the morning high $6,639.5 to $6,650 would support a run at $6,700 levels to bring the day’s first major resistance level at $6,739.9 into play, with any broad based market rally likely to see Bitcoin test selling pressure at the 23.6% FIB Retracement Level of $6,757 before any pullback.

Failure to move through to $6,650 could see Bitcoin hit reverse later in the day, with a fall through the morning low $6,592.7 bringing the day’s first major support level at $6,526.7 into play, while sub-$6,500 support levels are unlikely to be tested, barring particularly negative news hitting the wires.