Bitcoin Desperate and in Need of Support

Bitcoin slid by 4.85% on Tuesday, following Monday’s 1.51% fall, to end the day at $7,986.3. The day’s sub-$8,000 close was the first since 18^th April, reaffirming the bearish trend formed at 5^th May’s swing hi $9,999.

A start of the day $8,408.3 was the only highlight for the Bitcoin bulls in what was yet another day in the hands of the Bitcoin bears, with selling pressure at around the 23.6% FIB Retracement Level of $8,415 playing a hand from the start of the day, leaving the day’s first major resistance level at $8,589.37 untested.

With direction through much of the day negative, following Monday afternoon’s reversal, a late in the day sell-off saw Bitcoin slide from $8,200 levels to an intraday low $7,943.3, Bitcoin sliding through the day’s first major support level at $8,254.47 and second support level at $8,114.33 with relative ease.

For the Bitcoin bulls, avoiding a new swing lo and the day’s third major support level at $7,779.43 will have been of little comfort as investors continue to grapple with the imminent shift in the regulatory landscape, a myriad of changes likely to impact investor profiles, not to mention the exchanges that will almost definitely fall under significantly greater scrutiny. South Korean and Japanese exchanges are already feeling the heat and it’s just the beginning, though the wash out may ultimately deliver a vastly more open and transparent asset class.

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At the time of writing, Bitcoin was down 0.87% to $7,908.1, recovering from an early morning low and new swing lo $7,840.3, to leave the day’s first major support level at $7,817 untested early in the day.

A start of the day move back through to $8,000, with a morning high $8,020 was the only positive, the day’s first major resistance level at $8,281.97 left untested, as investors continued to pull out following 2 consecutive days of heavy losses across the broader market.

For the day ahead, a move back through to $8,000 levels and a hold through the morning would support a run at the day’s first major resistance level at $8,281.97, while the 23.6% FIB Retracement Level of $8,415 remains some way off, the continued bearish trend bringing the day’s first major support level at $7,817 into play today.

While Bitcoin managed to avoid a new swing lo on Tuesday, this morning’s new swing lo further reaffirmed the bearish trend formed earlier in the month, when all the hype was about Bitcoin $10,000.

A lack of catalysts to reverse bearish trends is certainly an issue for the cryptomarket and for Bitcoin and, when considering Bitcoin’s short comings as an alternative to fiat money, barring an upgrade, any shift in investor focus to more practical offerings across the cryptomarket would also be a negative for Bitcoin at present.

Elsewhere, Bitcoin Cash was down 3.35% with NEM’s XEM down 3.1%, while Monero’s XMR bucked the trend early, up 1.71% at the time of writing.

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