Bitcoin Bulls Take a Breather but could be Back Later

Bitcoin gained 4.41% on Sunday, following Saturday’s 1.5% rise, to end the day at $8,360.4. For the week, Monday through Sunday, Bitcoin rallied 19.6% to close out at $8,000 levels for the 2^nd consecutive day.

A start of the day intraday low $7,997.2 was the only negative for Bitcoin and the broader market, with the day’s low holding well above the first major support level of $7,849.6. A rally though to an intraday high $8,458.8 saw Bitcoin move through the first major resistance level of $8,175.6 and 2^nd resistance level of $8,343.3.

Some pullback through the afternoon to $8,200 was not enough to break investor resolve before the end of the weekend, with Bitcoin managing to bounce back to close out the weekend above the 2^nd resistance level and affirm the bullish trend formed at 6^th April’s swing lo $6,500.2.

The debate over whether the first quarter slump was down to the tax season will soon be over, with moves in the middle of this week expected to be a positive by those who have attributed the quarter slump to a sell-off to meet tax obligations, while the debate will also continue to linger on whether the recent run of form was attributed to Soros entering the market.

Either way, how the markets will perform near-term will continue to be linked to sentiment towards the regulatory landscape, with Soros Fund Management unlikely to be betting billions of Dollars of family money on the cryptomarket, such sizes needed to make any material impact, though Soros chatter may be enough to provide some direction.

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At the time of writing, Bitcoin was down 3.27% to $8,083.9, with a spill over from an end of Sunday rebound the only positive for Bitcoin in the early part of the morning.

An intraday high $8,415.5 struck within the first hour, fell short of the day’s first major resistance level of $8,547.07, with the broad market pullback seeing Bitcoin slide to an early $7,999 low, falling through the day’s first major support level of $8,085.47 to come up against the 23.6% FIB Retracement Level of $7,996.57 that provided some much needed support.

Bitcoin has managed to recover some of the morning’s losses, which suggests that an afternoon rebound may be on the cards should Bitcoin manage to move back through to $8,150 in the middle part of the day, though for Bitcoin to test the start of the day’s highs, sentiment will need to material shift early, investors having been keen to lock in some impressive profits from last week’s rally.

Things could get a little more severe if Bitcoin fails to move back towards $8,150, crypto investors more than capable of holding out for longer, to leave Bitcoin without much needed support in the wake of a weeklong rally, though we wouldn’t expect any pullbacks to sub-$7,500 levels today.

Looking across at the Cboe Bitcoin Futures, the April contract was down just $10 to $8,080 though again, in current market conditions we don’t anticipate the futures market to provide too much direction, investors likely to be more focused on key support and resistance levels through the day.

Elsewhere, Cardano’s ADA bucked the trend early, rallying 3.97% while the rest of the cryptos were left floundering, with NEO the worst of the lot this morning, down 5.62% at the time of writing.

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