Bitcoin gives up $9,000 as Investors Fret over Regulator Action

Bitcoin slipped 2.25% on Thursday to mark the first day in the red since Saturday’s sell-off, ending the day at $8,692.09.

An early intraday high $9,099.59 failed to test the day’s first major resistance level of $9,143.85, leading to a pullback, as investor sentiment turned negative through the day. An intraday low $8,503.52 fell through the day’s first major support level of $8,710.58 before finding support at the day’s 2^nd support level of $8,516.07 through the middle part of the day, closing out the day just shy of $8,700.

The bullish trend formed from late Sunday’s bounce back reversed through Thursday, with a lack of investor appetite at the day’s 23.6% FIB Retracement Level of $8,748.5 seeing Bitcoin pull back towards the day’s 38.2% FIB Retracement Level of $8,476.5 before investors moved back in on the hopes of a late in the day rally.

News of South Korean regulators planning to investigate South Korea banks on AML measures linked to the cryptomarket ultimately weighed on investor appetite, with concerns over banks breaching recently imposed regulations seeing investors pull out on the news.

To make matters worse for Bitcoin and the clan, news of plans by Japan’s regulators to take action against Binance, which has been in operation without a license added further pressure through Thursday and the early part of this morning, Binance being the largest exchange by daily volume.

It’s certainly been a long week for the cryptomarket, the declines through the 2^nd half of the week coming in spite of more favourable chatter from the G20 in the early part of the week.

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Things were not much better through the early part of this morning, with Bitcoin down 3.53% to $8,397.34 at the time of writing.

This morning’s moves saw Bitcoin fall through the day’s first major support level of $8,430.54, bringing the day’s 2^nd support level of $8,169 into play, with Bitcoin struggling to find buyers at current levels.

Negative sentiment across the market has seen Bitcoin give up $9,000 levels once more and, unless there is a material shift in sentiment through the 2^nd half of the day, sub-$8,000 levels may well be on the cards going into the weekend.

We will expect the day’s first major resistance level of $9,026 to be left untested through the day, with sellers likely to be lined up at the day’s 23.6% FIB Retracement Level of $8,6605.08 and 38.2% FIB Retracement Level of $8,765.03.

A move back through to $8,500 levels would provide some relief and a run at the day’s retracement levels, but it’s looking bearish, with Bitcoin facing the prospects of a 2^nd consecutive day in the red.

Looking across to the Cboe Bitcoin futures market, the April contract was down $240 to $8,360, largely tracking Bitcoin’s moves through the morning and unlikely to provide investors with any incentive to jump back in.

Elsewhere, it was a sea of red, with Cardano’s ADA, NEM’s XEM and NEO seeing the greatest falls through the morning, Cardano’s ADA leading the way down with a 7.37% tumble at the time of writing.

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