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Bitcoin Hits Reverse Early as the Bulls Lose their Grip

By:
Bob Mason
Published: Apr 12, 2018, 07:59 UTC

Bitcoin got hit with another reversal this morning, with $7,000 levels lost yet again as the market continues to pull out at key resistance levels, leaving Bitcoin's extended bearish trend intact in spite of recent gains.

Alt Coins weekly chart, April 09, 2018

Bitcoin gained 1.59% on Wednesday, following Tuesday’s 1.01% rise, to end the day at $6,945 in what had been a relatively bullish day for Bitcoin and the broader market.

Following an early morning intraday low $6,777 that managed to avoid the day’s first major support level of $6,693.27, it was onwards and upwards from there, with Bitcoin breaking  through the day’s first major resistance level  of $6,940.67 with an intraday high $7,017.4 in the middle part of the day.

The bad news for the Bitcoin bulls was a failure to hold at $7,000 levels by the day’s end, with Bitcoin facing strong resistance at the psychological level through the remainder of the day.

Bitcoin’s moves through the day were in line with the broader market and, while Bitcoin enjoyed 2 consecutive days of gains, the bearish trend formed back in March remained intact, with Bitcoin yet to make a move through the 38.2% FIB Retracement Level of $7,480.57 and hold above to shift investor sentiment.

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BTC/USD 12/04/18 Hourly Chart

At the time of writing, Bitcoin was down 1.63% to $6,830, with Bitcoin giving up gains from the early part of the morning.

Momentum from Wednesday supported Bitcoin’s move through to an early morning $6,965 high before the  broad market sell-off saw Bitcoin slide to a morning low $6,753, falling through the day’s first major support level of $6,808.87.

With Bitcoin having failed to break through to $7,000 levels and test the day’s first resistance level of $7,049.27, sentiment will need to change across the market for Bitcoin to recover the morning’s losses and have a push for $7,000 levels and look for a move through the 23.6% FIB Retracement Level of $7,077.17 to begin reversing the extended bearish trend.

Failing to break back through to $7,000 levels in the middle part of the day will likely test investor appetite in the latter part of the afternoon, which could see Bitcoin pull back to $6,800 levels.

It’s been another day of ‘what might have been’ for  Bitcoin, with another rally going into reverse as key resistance levels came into sight, the continued negative sentiment towards an anticipated shift in the crypto regulatory landscape pinning back the majors.

Looking across at the Cboe Bitcoin Futures, the April contract was down $110 to $6,810, with the smart money continuing to provide little direction for Bitcoin investors.

Elsewhere in the cryptomarket, Cardano’s ADA bucked the trend through the early part of the day, gaining 4.49%, with Ripple’s XRP and NEO amongst the biggest losers in what has been quite a morning sell-off.

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About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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