Bitcoin Gives Up more Ground to Bitcoin Cash and Chances of $10,000

Bitcoin sees red in the early part of the day, while Bitcoin Cash finds buyers as the pair continue to diverge ahead of next month’s hard fork.
Bob Mason
bitcoin cash

Bitcoin slid 8.28% on Wednesday, reversing Tuesday’s 7.98% gain, to end the day at $8,847.7, the declines coming off the back of a broad market sell-off as investors looked to lock in profits stemming from the latest bull-trend formed back at 6th April’s swing lo $6,500.2.

An intraday high $9,767.4 in the early hours of the morning came up short of the day’s first major resistance level of $9,869.97 and Bitcoin’s $10,000 milestone, with a reversal through to the latter part of the day seeing Bitcoin slide through the day’s first major support level of $9,312.07 and 2nd support level of $8,970.63 to an intraday low $8,765.1, the day’s moves testing buyer appetite at the 23.6% FIB Retracement Level of $8,979 on its moves.

The good news for the Bitcoin bulls would have been the hold above the 38.2% FIB Retracement Level of $8,506, though failing to hold at $9,000 levels would have been a disappointing, further delaying Bitcoin’s recovery to $10,000 levels.

In spite of Wednesday’s slide, the near-term bull trend remains intact, with direction through the rest of the week likely to have a material influence on the broader market.

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At the time of writing, Bitcoin was up just 0.01% to $8,870, with Bitcoin lagging Bitcoin Cash and some of the other major in what’s been a choppy start to the day.

A slide at the start of the day saw Bitcoin fall through to a morning low $8,652.2, with Bitcoin managing to avoid testing the day’s first major support level of $8,486, Bitcoin’s moves between the 23.6% FIB Retracement Level of $8,996 and 38.2% FIB Retracement Level of $8,519 providing the necessary support to avoid a more material decline early on.

An early $8,960 high saw Bitcoin face plenty of resistance at the $9,000 psychological level, with the day’s first major resistance level of $9,448.37 some way off and unlikely to be tested through the day ahead.

With the broader market in positive territory, supported by a resurgent Bitcoin Cash, Bitcoin will need to break back through to $9,000 levels to continue supporting the current bull trend, the moves through Wednesday showing signs of a reversal of the near-term bull trend that could ultimately weigh on the broader markets.

Failure to break back through to $9,000 levels could see Bitcoin pull back to test the day’s first major support level of $8,486.07, with the broader market sentiment likely to dictate buying appetite at the 38.2% FIB Retracement Level of $8,519.

While we would expect Bitcoin to avert a major sell-off to bring sub-$8,000 levels into play, investors will likely tread carefully through the early part of the day.

Looking across at the Cboe Bitcoin Futures, the May contract was down $200 to $8,870, providing investors with little incentive to jump back in at current levels.

Elsewhere, Bitcoin Cash was up 3.24%, with Waves up 3.03% and Stellar’s Lumen up a whopping 11.12%, with only a handful of majors joining Bitcoin in the red.

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