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.

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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.

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