Bitcoin – Are the Bulls About to Resurface?Bitcoin starts the week in the red, alongside the broader market, with an early afternoon move needed to avoid another week of decline. The Bitcoin bulls may be getting ready to make a move, but the news wires will need to behave.
Bitcoin slipped by 0.61% on Sunday, partially reversing Saturday’s 1.64% gain, to end the week down 4.57% at $6,449.4.
A relatively range bound start to the day saw Bitcoin’s intraday high $6,573 come up short of the day’s first major resistance level at $6,590.47 in the late morning, leading to a pullback through the middle part of the day to an intraday low $6,424.8, which held above the day’s first major support level at $6,360.77 to recover to $6,400 levels by the day’s end.
For the Bitcoin bulls, holding above the day’s first major support level would have provided some comfort, though with the day’s first major resistance level left untested and with Bitcoin failing to take a run at $7,000 levels to bring the 23.6% FIB Retracement Level of $7,026 into play, the Bitcoin bulls are going to need to pull a rabbit out of the hat for a bearish trend reversal to kick in.
Concerns over the crypto regulatory landscape and how governments and regulators are going to crack down on the crypto exchanges continue to be an issue, with the lack of particularly negative news through the 2nd half of last week failing to provide support for Bitcoin or the broader market.
At the time of writing, Bitcoin was down just 0.1% to $6,432.1, with Bitcoin managing to recover from a start of the day $6,370.8 low that saw Bitcoin slide through the day’s first major support level at $6,391.8 before support kicked in as the day’s second major support level at $6,334.2 came into sight.
An early $6,465.4 high, coming off the back of the start of the day pullback, fell well short of the day’s first major resistance level at $6,540, the pullback at the start of the day continuing on from a late sell-off on Sunday.
For the day ahead, Bitcoin will need to move through $6,482 to $6,500 levels to bring the day’s first major resistance level at $6,540 into play, though for Bitcoin to break through to $6,500 levels, we can expect plenty of resistance to hinder a run at the first major resistance level in the early part of the day.
Failure to break through to $6,500 levels will likely see Bitcoin pullback to sub-$6,400 levels to test the day’s first major support level at $6,391.8 for a second time that should provide sufficient support to avert a slide to the second major support level at $6,334.2.
While the broader market and Bitcoin are in the red at the time of writing, moves in recent days have been relatively range bound by historical standards and, should the news wires remain on the quieter side, a run at $6,600 levels could be in play through the afternoon, which would support a pickup across the broader market.