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Bitcoin – Bulls Struggle to Get out of the Ranges

By:
Bob Mason
Published: Jul 6, 2018, 05:38 UTC

With Bitcoin back in the Bitcoin rut, the current ranges could spell trouble for the Bitcoin bulls if there's no recovery to $6,700 levels through the day, the path of least resistance continuing to be downwards.

bitcoin

Bitcoin fell by 0.89% on Thursday, partially reversing Wednesday’s 1.24% gain, to end the day at $6,531.1.

Following a start of the day dip, Bitcoin rebounded to an intraday high $6,704.7 in the early hours of the day, which fell short of the 23.6% FIB Retracement Level of $6,757 and the day’s first major resistance level at $6,778.5 before easing back to $6,600 levels through the remainder of the morning.

Any hopes of a second consecutive day of testing resistance at the 23.6% FIB Retracement Level of $6,757 were lost through the afternoon, with Bitcoin sliding in the mid-afternoon to an intraday low $6,432.4 before recovering to $6,500 levels, Bitcoin managing to avoid calling on support at the day’s first major support level at $6,407.7.

For the Bitcoin bulls, it was yet another day where investors were unable to capitalize on bullish moves through the previous day, Bitcoin having tested resistance at the 23.6% FIB Retracement Level for the first time since 11th June on Wednesday.

The failure to hold on to $6,700 levels and a pullback to $6,500 levels continued to support the extended bearish trend formed at 5th May’s swing hi $9,999 though, for the Bitcoin bulls, the good news will be further evidence of Bitcoin having bottomed out at 24th June’s swing lo $5,755.

With the news wires on the quieter side, the reversal was relatively minor on Thursday, a continued threat of heavy handed cryptomarket regulations being rolled out in the summer pinning back Bitcoin and the broader markets through the summer.

We continue to view $6,700 levels as a key level for Bitcoin and the Bitcoin bulls this week, with any pullback to sub-$6,300 levels likely to bring sub-$6,000 levels back into play before any recovery.

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At the time of writing, Bitcoin was down 0.32% to $6,510.2, with the start of the day being relatively range bound when compared with some of the majors.

An early morning $6,552.4 fell short of the day’s first major resistance level at $6,682.73 and more importantly, $6,700 levels, with a mid-morning $6,485 low coming within reach of the day’s first major support level at $6,401.43 before recovering to $6,500 levels.

For the day ahead, moving through to $6,553.07 would support a run at the day’s first major resistance level at $6,682.83 and, while Bitcoin may have some influence on sentiment across the broader market, Bitcoin may well find resistance too great to break back through to $6,700 levels for a 3rd consecutive day should sentiment across the cryptomarket not improve in the early afternoon.

Failure to move through $6,553.07 to take a run at $6,680 levels could see Bitcoin take bigger hit through the early afternoon to test support at the first major support level at $6,401.43 before recovering, sub-$6,400 support levels unlikely to be tested through the day.

BTC/USD 06/07/18 4-Hourly Chart

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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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