Bitcoin – Can the Bulls Hold on or is Bitcoin Heading for $6,400?

Bitcoin holds on to $6,700 levels after an early dip, but with Monday’s price action over and the markets steadying, there could be some downside ahead.
Bob Mason
Bitcoin Brown

Bitcoin gained 6.32% on Monday, following a 0.02% rise on Sunday, to end the day at 6,736.9, in what was one of the cryptomarket nuances that has plagued regulators and the SEC in particular.

A relatively range bound start to the day saw Bitcoin recover from a morning intraday low $6,294.6 to $6,300 levels ahead of the mid-morning spike that had investors and the markets scouring the news wires for a possible cause, Bitcoin breaking through the day’s major resistance levels, 23.6% FIB Retracement Level and 38.2% FIB Retracement Level of $7,376 to an intraday high $7,788.

The surge in value was attributed to two factors, the first and most significant being a $500 million purchase of Bitcoins with USDT that contributed to a fall in USDT to sub-$0.95 levels. Rumours of Binance delisting all USDT pairings will have also provided some support for Bitcoin, with the spikes across the broader market reflective of a USDT sell-off in favour of the crypto majors and adding to USDT’s pullback on Monday morning before recovering to $0.98 levels through the day.

For the Bitcoin bulls, of concern will be Bitcoin’s inability to hold on to $7,000 levels and the pullback through the FIB Retracement Levels by the day’s end, reaffirming the extended bearish trend formed at early May’s swing hi $9,999. Perhaps of greater concern will be on how the SEC views the latest spike, which yet again reflects how influential a few investors can be on price action and that’s before considering the fact that there is still plenty of jostling across the exchanges on the listing and delisting of cryptocurrencies that also has a significant influence on price, reflecting the markets lack of maturity.

The news wires were less crypto friendly on the day that would have contributed to the pullback, with Barclays joining Goldman Sachs in hitting pause on its cryptocurrency trading desk plans.

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At the time of writing, Bitcoin was down 0.19% to $6,728.9, with Bitcoin easing back to an early morning low $6,695.3 before moving back through to $6,700 levels and an intraday high $6,749.8, the early moves leaving the day’s major support and resistance levels untested, with Bitcoin coming up short of the 23.6% FIB Retracement Level of $6,757.

For the day ahead, a move back through the morning high would support another run at the 23.6 FIB Retracement Level of $6,757, with sentiment across the broader market needing to materially improve to support a breakout to $6,800 levels, $7,000 levels and the day’s first major resistance level at $7,585.07 unlikely to be tested on the day.

Failure to move through the morning high to $6,750 levels could see Bitcoin pullback further later in the day, with a fall through the morning low to $6,650 bringing $6,500 levels into play before any recovery, with a further pullback to $6,400 levels feasible should sentiment across the broader market deteriorate through the day.

The markets have settled from Monday’s price action and Bitcoin’s back in the tight ranges, but with Bitcoin holding on to some of Monday’s gains, albeit minor, some downside would be expected.

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