Bitcoin Deep in the Red, $9,000 Becoming a Distant Memory

Following on from a pretty dire weekend for Bitcoin that resulted in a 5.2% slide on Sunday, to end the weekend at $8,456.41, things did not get much better on Monday.

A range bound start to the day, ultimately led to another tumble through the middle part of the day, with Bitcoin sliding from a morning high $8,500 to an intraday low $7,831.16.

While the early $8,500 high failed to test the day’s first major resistance level of $8,634.73, there was plenty of selling pressure at the day’s 23.6% FIB Retracement Level of $8,482.9, as news hit the wires of Twitter confirming the ban on cryptocurrency ads on Sunday.

The day’s slide saw Bitcoin fall through all three support levels, before recovering to hold above the day’s 3^rd support level of $7,878.94 in a bounce back in the final hours of the day that certainly eased some of the pain, though with Bitcoin having fallen for a 3^rd consecutive day, the bearish trend that had formed at last Wednesday’s swing hi $9,188.1 remained firmly in place.

Cryptocurrency investors may be getting a little despondent of the fact that the a decentralized currency and cryptomarket can be influenced so heavily, not just by governments and regulators, but also by the likes of Google, Facebook and now Twitter.

As the market continues to grow, the development of its own advertising platform and social media site that is capable of reaching the masses would certainly be of some value, while from a government and regulator standpoint, a global set of rules may ultimately return control to the respective jurisdictions. Governments could introduce regulations that address jurisdictional arbitrage by putting the onus of responsibility with the crypto exchanges. Such a move would certainly put exchanges willing to allow illegal cross-border trading at risk, though we are bound to see some jurisdictions look to become cryptomarket havens.

It’s not surprising that the crypto investors are nervous, when considering what possible changes are on the horizon, a shift from no deregulation to regulation always a painful one, irrespective of asset class.

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At the time of writing, Bitcoin was on the slide again, down 2.82% to $7,920, with Bitcoin seeing Monday’s late in the day rally reverse at the start of the day, an intraday low $7,742 testing the day’s first major support level of $7,822.79 on more than one occasion.

An early move through to the day’s 23.6% FIB Retracement Level of $8,151.39, with a morning $8,211.62 high, failed to hold, with investors quick to jump out, leaving Bitcoin well short of testing the day’s first major resistance level of $8,491.64.

Bitcoin continues to sit in a bear spin, with attempts to break through resistance levels since the weekend leading to sharper declines, speculative investors quick to dump holdings on the rallies that have been getting shallower of late.

For the day ahead, a move back through to $8,000 levels would support a run at the day’s 23.6% FIB Retracement Level, though for the day’s first major resistance level to be tested, the bulls will have the 38.2% FIB Retracement Level at $8.349.51 to contend with. If sentiment doesn’t improve soon, support levels will likely be back in play in the afternoon, which could bring sub-$7,000 levels into the picture.

Looking across to the Cboe Bitcoin Futures, the April contract was down $10 to $7,910, in what looks to be yet another day when the futures market is unable to show the road to a recovery.

Elsewhere, Cardano’s ADA was down 7.27%, recovering from heavier losses earlier in the day, with Stellar’s Lumen down 6.67% and NEO down 6.75% at the time of writing, with all of the majors taking a hit this morning.

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