Bitcoin – Early Support Kicks in With the Bulls in Limbo

Bitcoin finds support early, but a failure to hold on to $6,300 levels could become an issue as the day progresses, the bears still in control.
Bob Mason
Trading cryptocurrencies

Bitcoin hit the brakes on Monday, sliding 3.63% to more than reverse Sunday’s 1.44% gain, with the losses seeing Bitcoin end the day at $6,250.

An early morning intraday high $6,524 saw Bitcoin fall short of the first major resistance level at $6,586.03, with Bitcoin continuing to struggle to hold on to $6,500 levels, a broad based market reversal seeing Bitcoin slide to a morning low $6,382 before finding support to strike an afternoon high $6,510.

A late in the day sell-off saw Bitcoin cough up $6,500 levels for a 2nd time in the day, with Bitcoin sliding through the first major support level at $6,345.03 to an intraday low $6,230, the negative sentiment across the market seeing Bitcoin’s support at $6,300 waver on the day.

Following Friday’s rally, which was nothing more than a dead cat bounce, the concern for the Bitcoin bulls near-term will be the heavier sell-offs and a negative trend that has begun to creep into the cryptomarket at the start of each week, which is likely to be down to investor concerns over possible regulatory updates hitting the news wires.

Following the SEC’s decision earlier in the month to delay the approval of a number of Bitcoin ETFs, a decision on whether to approve 2-ProShares Bitcoin ETFs is due on Thursday.  With the SEC having yet to approve any Bitcoin ETFs and cryptomarket volatility persisting, Thursday’s decision will be watched closely and will certainly have a material impact on Bitcoin and the broader market.

An approval and it could pave the way for an extended rally back through to $7,000 levels and beyond, any approval raising hopes that the delayed Bitcoin ETF decisions from earlier in the month could enjoy the same fate. Declined and Bitcoin will most likely be back at sub-$6,000 levels with the talk of sub-$5,000 levels likely to resurface.

Investors all too aware of what’s at stake from a market reaction perspective, which will likely continued to drive volatility through the middle of the week.

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At the time of writing, Bitcoin was up 0.74% to $6,302.1, with Bitcoin moving from a start of a day low $6,245 to a morning high $6,344.2 before easing back, the moves through the early morning leaving the major support and resistance levels untested.

For the day ahead, a move back through to $6,335 would support a run at $6,400 levels to bring the first major resistance level at $6,439.33 into play, while $6,500 levels may be a step too far barring a material shift in broader market sentiment, with Bitcoin needing to hold on to $6,300 levels through the morning to support a rally later in the day.

Failure to move back through the morning high to $6,400 levels could see Bitcoin cough up gains from the early part of the day, a pullback to the morning low $6,245 bringing sub-$6,200 and the day’s first major support level at $6,145.33 into play before any recovery.

Sentiment towards the SEC’s decision on whether to approve 2 Bitcoin ETFs will be in the minds of investors, with any reversal likely to be on the heavier side should the news wires disappoint.

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