Bitcoin Cash Hard Fork Takes the Battle to Bitcoin

Bitcoin ended the day flat on Monday, with just a 0.18% fall, following Sunday’s 2.49% gain, to end the day at $8,667.6.

An early morning sell-off saw Bitcoin pullback through the 23.6% FIB Retracement Level of $8,628 and the day’s first major support level at $8,413.93 to an intraday low $8,271, before finding support off the back of a shift in sentiment across the cryptomarket in the middle part of the day.

Bitcoin broke through the 23.6% FIB Retracement Level of $8,628 to an intraday high $8,884.5 to test the day’s first major resistance level at $8,855.63 and selling pressure at the 38.2% FIB Retracement Level of $8,890 before easing back to the day’s end $8,667.6.

Monday’s run at $9,000 levels will have provided some comfort to investors fearing a more material reversal ahead of today’s Bitcoin Cash hard fork and in the wake of the regulatory news from South Korea.

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At the time of writing, Bitcoin was up 4.32% to $8,776.0, with an early dip to a morning low $8,615.0 holding well above the day’s first major support level at $8,330.9, while pulling back through the 23.6% FIB Retracement Level of $8,628 to test support at $8,600 levels, following the recent consolidation.

For the day ahead, a move through the morning’s $8,793 high to $8,800 levels would bring $9,000 levels back into play, Bitcoin having failed to touch $9,000 since Friday’s 6.71% slide.

Market sentiment will have a defining role in selling pressure at the 38.2% FIB Retracement Level of $8,890, a broad market rally likely to bring the day’s second major resistance level at $9,221.2 into play late in the day, though much will depend on today’s Bitcoin Cash hard fork.

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Bitcoin Cash Hard Fork in Focus

With the Bitcoin Cash hard fork in focus through the day, the market remains divided on whether the hard fork will drive increased demand for Bitcoin Cash that would weigh on Bitcoin. Should sentiment across the market turn negative ahead of today’s fork, we would expect Bitcoin to be pinned back from any material moves until the hard fork dust settles.

Failure to move through to $8,800 levels could see Bitcoin face some selling pressure through the middle of the day to bring the day’s first major support level $8,330.9 back into play, such a move likely to see Bitcoin call on sub-$8,000 support levels before any recovery.

We can expect a choppy day ahead, with Bitcoin and Bitcoin Cash battling it out, Bitcoin’s near-term bearish trend still intact.

Elsewhere, Ripple’s XRP was amongst the front runners, up 2.52%, with DASH leading the way, up 3.29% at the time of writing.

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