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Bitcoin Consolidates While the Rest See Red

By:
Bob Mason
Published: Jul 19, 2018, 04:56 UTC

Bitcoin bucked the trend on Wednesday, while joining the rest of the majors early on this morning, with minor losses as investors lock in profits off the back of a string of solid gains through the week. Support levels are in play today.

Alt Coins weekly chart, June 18, 2018

Bitcoin gained 0.75% on Wednesday, following Tuesday’s 8.79% rally to end the day at $7,374.5, with Bitcoin extending its winning streak to 5 consecutive days.

A relatively range bound morning saw Bitcoin move through to a morning high $7,561.9 before pulling back to $7,400 levels, with a second attempt at a breakout seeing Bitcoin move through to an intraday high and new swing hi $7,588 before sliding through to an intraday low $7,246.5 late in the day.

In spite of the choppy end to the day, Bitcoin managed to leave the day’s first major resistance level at $7,647.53 and first major support level at $6,829.63 untested through the day and, more importantly, saw Bitcoin continue to hold above the 23.6% FIB Retracement Level of $7,155, supporting the bearish trend reversal formed at 24th June’s swing lo $5,755.

For the Bitcoin bulls, the moves through the day bucked the broader market trend, with the majority of the majors seeing red through the day, questioning whether the news driven momentum rally can continue through the week, Bitcoin hitting new highs but failing to break through to $7,600 levels on the day.

There is certainly the risk of investors locking in recent gains should Bitcoin get stuck in tight ranges, which could lead to a rapid end to the near-term bullish trend formed following Bitcoin’s breakout from the 23.6% FIB Retracement Level of $6,757, the extended bearish trend having pinned Bitcoin back through the summer as investors fretted over what lies ahead on the regulatory front.

The early part of the week rally may have been premature when considering the lack of regulatory detail released by the FSB, investors jumping on any bit of good news to drive the Bitcoin and the broader market.

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At the time of writing, Bitcoin was down 0.57% to $7,337, with Wednesday’s late sell-off continuing into the early hours of this morning, Bitcoin falling from a start of the day $7,379.9 high to a morning low $7,281.4 before recovering to $7,300 levels.

The moves through the early part of the morning saw Bitcoin steer clear of the day’s major support and resistance levels and, more importantly, continue to hold above the 23.6% FIB Retracement Level of $7,155 to continue to support the near-term bullish trend.

For the day ahead, a move through to $7,400 levels would support a run at $7,500 levels to bring the first major resistance level at $7,559.5 into play later in the day, though with sentiment across the broader market on the negative side early on, Bitcoin will likely face plenty of resistance at $7,500 to hold back a run at $7,559.5.

Failure to move back through to $7,400 levels will likely see Bitcoin pullback to $7,200 levels later in the day to bring the first major support level at $7,218 into play before any recovery, Bitcoin unlikely to give up $7,000 levels just yet.

BTC/USD 19/07/18 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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