Bitcoin – Gripped by Bear Fever

Bitcoin sees red early, with Friday’s sell-off continuing into the early hours, with Bitcoin needing to hold on to $6,000 to avoid a major tumble.
Bob Mason
BTC/USD daily chart, June 15, 2018

It was another dark day for the Bitcoin bulls, with Bitcoin falling by 5.77% to more than reverse Thursday’s 4.2% gain and end the day at $6,156.5, its lowest end of day since late June.

The bearish moves through the week left Bitcoin down 12.4% through to the end of Friday, the losses mild relative to its peers.

An early afternoon recovery from a morning low $6,301 to an intraday high $6,537 left the day’s major support and resistance levels untested, whilst giving hope of a second consecutive day of gains.

Tracking the broader market through the afternoon, a pullback to $6,300 levels led to a slide through the first major support level at $6,275.73 to an intraday low $6,010, to test the day’s second major support level at $6,006.87 before recovering to $6,100 levels.

For the Bitcoin bulls, sub-$6,000 levels were averted, though until there is some good news hitting the wires, the bears are likely to remain in control, with Bitcoin in dire need of a weekend rally to shake off the market reaction to the SEC’s delays in approving Bitcoin ETFs.

Through the day, there was no materially negative news to trigger the late in the day sell-off, Bitcoin’s failure to make a move from the mid-day intraday high leading investors to pull out late in the day in fear of more negative news hitting the wires.

With both the SEC’s delayed decisions on the Bitcoin ETFs and the G20’s planned roll out of unified rules and regulations to come, there’s plenty of uncertainty ahead.

Get Into Cryptocurrency Trading Today

At the time of writing, Bitcoin was down 0.37% to $6,120.6, with Bitcoin pulling back from a start of a day $6,175.7 high to a morning low $6,069.9 before recovering to $6,100 levels.

Moves through the early part of the day saw Bitcoin steer clear of the day’s first major support level at $5,919.73 and first major resistance level at $6,483.53, with $6,000 a line in the sand for Bitcoin, holding on to $6,000 levels key over the weekend.

For the day ahead, a move through the start of the day high $6,175.7 to $6,200 levels would signal the beginnings of a much needed weekend rally, with the day’s first major resistance level at $6,483.53 in play. Market sentiment will need to significantly improve however, for Bitcoin to be eyeing $6,400 levels, a break back through to $6,300 levels likely to be as good as it gets in the event of a weekend rally.

Failure to break through to $6,200 levels through the early afternoon could see Bitcoin take a hit later in the day, with a pullback through the morning low $6,069.9 bringing sub-$6,000 levels and the first major support level at $5,919.73 into play.

With the bears firmly in control, a sell-off may well gather momentum should the bulls give up $6,000 levels, which could lead to talks of Bitcoin at sub-$5,000.

For those who missed out on the December rally, a steadying of the ship will likely, not only bring back side lined investors, but see new money pour in, though the SEC and G20 are going to need to look favourably to really give Bitcoin and the broader market a chance.

Buy & Sell Cryptocurrency Instantly

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US