Bitcoin Coughs up $7,000 as the Market gets hit with Regulatory Chatter

Bitcoin slipped by 0.64% on Wednesday, partially reversing Tuesday’s 3.04% gain, to end the day at $7,034.3.

A relatively range bound start to the day saw Bitcoin recover from a morning low $7,021.3 to a late morning intraday high $7,139.4 before hitting reverse in the early afternoon, the day’s high falling short of the first major resistance level at 7,182 and more importantly, the bulls next target of $7,300.

Following the broader market trend, Bitcoin slid to an early afternoon intraday low $6,924.3, calling on support at the day’s first major support level at $6,926.1 before recovering to $7,000 levels.

Sub-$7,000 support levels continued to be tested through the late afternoon, with Bitcoin and the cryptomarket responding to reports of EU member states planning to discuss cryptocurrencies in early September at the next EU Finance Conference, focus being on transparency, terrorist funding and all the other pitfalls of the cryptomarket that has led to regulators taking a greater interest in the asset class.

For the bulls, the good news will have been the continued sub-$7,000 support that supported Bitcoin’s recovery to $7,000 levels, the broader market seeing heavier losses on the day, though regulatory risk remains the key risk for Bitcoin and the cryptomarket, with anything negative seeing investors ultimately running for the hills.

The reversal across the cryptomarket saw Bitcoin’s dominance rise back to 53.1%, reflecting the bearish sentiment across the market following the news out of Europe.

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At the time of writing, Bitcoin was down 0.77% to $6,985, with Bitcoin falling from a start of a day morning high $7,060 to an early morning low $6,963.5 before steadying, the moves through the early part of the day leaving the major support and resistance levels untested.

Market reaction to the prospects of EU finance ministers discussing the negative elements of the cryptomarket continued to weigh at the start of the day, with Bitcoin giving up $7,000 levels.

For the day ahead, a move back through to the start of the day $7,060 high would support a run at $7,100 levels to bring the day’s first major resistance level at $7,141.03 into play, though for Bitcoin to take a run at $7,100 levels later in the day, a move back through to $7,000 later in the morning will be needed.

Failure to move through the morning high $7,060 could see Bitcoin take a bigger hit later in the day, with the day’s first major support level at $6,925.93 in play, while we would expect Bitcoin to steer clear of sub-$6,900 levels and the day’s second major support level at $6,817.57.

In spite of market jitters over how the EU will look to progress on the regulatory front, they key drivers near-term remain the SEC’s review of the recently rejected Bitcoin ETF applications and the delayed roll out of the G20’s planned unified rules and regulations.

The market may find some comfort in the fact that the EU is unlikely to go it alone on the regulatory front and will likely look towards the G20 crypto review team to deliver, though the current .