Bitcoin Down again, the Bears Eyeing sub-$6,000

Bitcoin slipped by 1.16% on Monday, following Sunday’s 0.15% gain, to end the day at $6,944, the first sub-$7,000 day’s end since 16^th July.

An early morning move through to an intraday high $7,153.6 saw Bitcoin break through the first major resistance level at $7,112.6 before tracking the broader market into the red.

A day long reversal saw Bitcoin pullback through the first major resistance level to sub-$7,000 levels, with Bitcoin falling through the day’s first major support level at $6,912.6 to an intraday low $6,847 before recovering to $6,900 levels, Bitcoin unable to recover to $7,000 levels on the day.

The moves through the day continued to reaffirm the resumption of Bitcoin’s extended bearish trend formed back at 5^th May’s swing hi $9,999, though the good news for the Bitcoin bulls was Bitcoin managing to avoid a pullback through the 23.6% FIB Retracement Level of $6,757.

On the news front, there was no materially damaging news hitting the wires to weigh on market sentiment at the start of the week, with last week’s slide and the lack of a weekend rally seeing investors unable to shake off jitters over what lies ahead for the broader market.

While the roll out of new crypto rules and regulations will be of significant importance to the broader market, the approval of Bitcoin ETFs will now also be considered a key driver, with growth in Bitcoin and the broader market now reliant upon significant capital inflows to cement the majors and support some form of a recovery from the year’s losses. Institutional money is expected to ease the market volatility seen throughout the year, with institutional investors considered longer term investors that don’t respond to daily market volatility and noise.

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At the time of writing, Bitcoin was up 0.17% to $6,952.7, a late in the day recovery on Sunday continuing into the early hours of this morning, with Bitcoin rising to a morning high $7,006.1 before sliding back to sub-$7,000 levels, the morning high falling short of the first major resistance level at $7,116.07.

For the day ahead, a break back through $6,981.53 to $7,000 levels would be needed to support a run at $7,100 levels and the first major resistance level at $7,116.07, though for Bitcoin to break out from resistance at $7,000, market sentiment will need to improve through the morning and Bitcoin will need to move back through and hold at $6,980 levels.

Failure to move through $6,980 to $7,000 levels by early afternoon could see Bitcoin hit reverse later in the day, with a pullback through an early morning low $6,907.4 bringing the day’s first major support level at $6,809.47 and 23.6% FIB Retracement Level of $6,757 into play.

The Bitcoin Bears will be looking for a move back down to sub-$6,000 levels and, following last week’s losses and tentative start to the week, failure to make up lost ground could see Bitcoin take a slide through the week.

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