Bitcoin – Bulls Try To Support, But Negative Bias RemainsBitcoin sees early gains though downward bias remains, with Bitcoin Cash to provide direction through the weekend.
Bitcoin fell by 0.94% on Friday, following a 1.49% slide on Thursday, to end the day at $6,418.7. The moves through the week, which included 3-days in the red, leaving Bitcoin down 1.13% for the current week, the losses not as severe as seen elsewhere, but with Bitcoin languishing at sub-$6,500 levels, that will be of little comfort for the Bitcoin bulls.
Friday’s broad based crypto sell-off, Ripple’s XRP one of the outliers, contributed to Bitcoin’s dominance creeping back up to 52.4%, while the total market’s cap eased back to $212bn levels, with market concerns over the 15th November Bitcoin Cash hard fork leaving a bearish mood across the market, Bitcoin’s added troubles being the pending SEC decision on the ETF applications.
While there has been further suggestions that approval of one or more of the ETFs would bring billions of Dollars into the market, Bitcoin failed to find the necessary support, investors treading more cautiously following the fake news earlier in the week in relation to Ripple and Swift that saw Ripple’s XRP see saw going into the weekend.
Of immediate focus will be the BCH hard fork and any material market disruption could be another issue for the broader market and quite possibly another headache for institutional investors looking to expand their field of investment. The reversal in Bitcoin Cash has been an impressive one and has certainly returned the much needed volatility, though perhaps not the negative bias that has seen Bitcoin distance itself from $6,500 levels once more.
At the time of writing, Bitcoin was up 0.24% to $6,434, with moves through the early morning seeing Bitcoin rise from a start of a day morning low $6,414.4 to a morning high $6,440.9 before easing back. The range bound start to the day saw Bitcoin leave the day’s major support and resistance levels untested and more importantly avoid a pullback to $6,300 levels, which would have been a November first.
For the day ahead, holding onto $6,430 levels through the morning would provide some further upside later in the day, while we can expect Bitcoin to fall short of a break through to $6,500 levels, with the day’s first major resistance level at $6,487.07 likely to pin Bitcoin back on the day.
Failure to hold onto $6,430 levels through the morning could see Bitcoin fall back through the morning low $6,414.4 to bring $6,300 into play before any recovery, though we would expect Bitcoin to steer clear of the day’s first major support level at $6,367.67 barring particularly negative news hitting the wires.
Bitcoin may have been the market barometer at the turn of last year, but for now Bitcoin Cash will likely remain the driver for the broader market, any reversal of early gains this morning, BCH up 0.3% to $547.9 at the time of writing, likely to lead to a reversal across the majors to test support levels before any recovery.