Bitcoin – Holding Steady as the Broader Market Suffers at the Hands of BCH

Bitcoin bounces back from $6,300 levels to hit the ranges once more after a lackluster start to the week. Some price action is needed soon…
Bob Mason
Bitcoin 3

Bitcoin started the week on a flat note, losing just 0.02% on Monday, following a 0.26% gain on Sunday, to end the day at $6,447.9.

In spite of the lack of a major move on the day, some volatility has been creeping back in, with Bitcoin seeing moves in recent days that have broken out of the tight ranges gripping Bitcoin and the broader market seen since mid-October.

Monday’s moves saw Bitcoin have a negative bias through the day, with a start of a day intraday high $6,481 that saw Bitcoin come up against the day’s first major resistance level at $6,485.93 being one of only two bullish moves in the day, a second run at the first major resistance level in the early afternoon also coming short, leading to a fall to a late afternoon intraday low $6,418.8.

The reversal saw Bitcoin steer well clear of the day’s first major support level at $6,383.83 before moving back through to $6,440 levels to end the day flat, negative sentiment over the Bitcoin Cash hard fork on Thursday providing Bitcoin with the support needed to avoid a return to $6,300 levels.

With few expecting a breakout anytime soon, investors holding out for the SEC ruling, even fake news failed to wake Bitcoin up from its deep sleep, reports of China planning to lift the existing Bitcoin ban turning out to be a misinterpretation of a Shenzhen court ruling that had no impact on the direction of Bitcoin in the early hours.

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At the time of writing, Bitcoin was up just 0.03% to $6,449, with a marginally choppier day seeing Bitcoin slide through the day’s first major support level at $6,416.8 to an early morning low $6,397.1 before finding support, Bitcoin managing to avoid the day’s second major support level at $6,386.7.

The recovery back through to $6,440 levels continues to reflect the high degree of support that Bitcoin receives at current levels, which suggests that few see a material Bitcoin sell-off anytime soon.

For the day ahead, a hold onto $6,445 through the rest of the morning would support a run at the day’s first major resistance level at $6,479, though for Bitcoin to break through the first major resistance level to bring $6,500 levels back into play, an early signal of a market rebound, fuelled by a Bitcoin Cash rally, would be needed.

Failure to move back through the morning high could see Bitcoin ease back to sub-$6,420 levels before steadying, with the general lack of movement through the late morning pointing to another range bound day ahead, which will have investors scouring the news wires in search of possible price action.

While Bitcoin’s flat and the broader market is in the red, NEM’s XEM continues to rebound following the resumption of trading on Coincheck, with a gain of 9.14% at the time of writing, which comes off 20.41% rally on Monday, being evidence in itself of what lies ahead should the outcome of the SEC decision be a favorable one for the Bitcoin bulls.

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