Bitcoin Finds Its Mojo, But Needs to Keep It

Bitcoin gained 5.12% on Tuesday, more than reversing Monday’s 3.17% fall, to end the day at $7,461.

Monday’s day long reversal spilled into Tuesday morning, with Bitcoin falling to an intraday low and new swing lo $7,040 before a broader market rally provided much needed relief through mid-morning.

Bitcoin rallied through the day’s first major resistance level at $7,342.57 to an intraday high $7,535, testing resistance at around the day’s second major resistance level at $7,577.83 before a pullback to $7,400 levels. The day’s high fell short of the 23.6% FIB Retracement Level of $7,738, leaving the bearish trend intact.

The morning rally came off the back of news that the South Korean government was planning on lifting its ban on initial coin offerings. In addition to reversing the ban, the National Assembly Committee also stated that it would look to form a task force to improve transparency in crypto trading and establish a healthy trade order, key being the inclusion of private experts on the task force.

With the markets having been concerned over a ban on cryptocurrencies, the latest news out of South Korea was certainly well received and was the type of catalyst that the cryptomarket had been in short supply of throughout the year.

The news may not have removed all of the regulatory uncertainty that has shrouded the cryptomarket through the year, but will ease some of the pain, though there’s still a long way to go before we can expect Bitcoin to be testing $10,000 resistance levels once more.

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At the time of writing, Bitcoin was up 0.44% to $7,498.1, as investors hold on through the early hours of this morning.

A start of the day dip to a morning low $7,441.9 saw Bitcoin steer well clear of the day’s first major support level at $7,155 to move through to a morning high $7,560 before easing back, with $7,500 resistance levels pinning Bitcoin back from more material gains through the start of the day.

For the day ahead, a move back through the morning’s $7,560 high would support a break through the day’s first major resistance level at $7,651, which has been left untested, while the Bitcoin bulls will need sentiment across the broader market to support a run at the 23.6% FIB Retracement Level of $7,738 and begin a bullish trend formation.

The markets will be watching Bitcoin closely, with any moves supportive of a broader market recovery from last week’s losses and, with the global equity markets having been in meltdown this week, the South Korean government press released couldn’t have been timelier, though it’s not just South Korea that needs to be crypto friendly.

U.S regulators may ultimately have the final say on global regulations for the cryptomarket, which continues to leave uncertainty and likely volatility in the market near-term.

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