Bitcoin Holds on to $9,000 as the Cryptomarket Struggles for Direction

Bitcoin ended the day rising by just 0.01% to an end of day $8,904.02 on Wednesday, with a late in the day sell-off seeing gains from earlier in the day reverse, before a final hour recovery pulled Bitcoin back into positive territory.

Bitcoin moved through to an intraday high $9,188.1 on Wednesday afternoon, following a relatively range bound morning that had seen Bitcoin hover around the $9,000 mark. The day’s high fell short of the first major resistance level of $9,215, leading to a pull back to an intraday low $8,755.

The lack of major moves through the day saw Bitcoin’s major resistance and support levels untested, with Bitcoin managing to hold above the day’s 23.6% FIB Retracement Level of $8,644 through to the day’s end.

Failure to hold on to $9,000 levels reflected some profit taking through the 2^nd half of the day, with Bitcoin having recovered from last Sunday’s swing lo $7,325.37, which came off the back of better than expected news from the G20 Summit on cryptocurrencies and planned regulations.

News through the latter part of the day included reports of a slide in Bitcoin trading volumes in India, hit be regulatory pressures, with the Hong Kong regulators also reported to have stopped initial coin offerings, the combination of the two reports adding pressure, though the markets are not large enough for the cryptos to go into another meltdown just yet.

Get Into Cryptocurrency Trading Today

At the time of writing, Bitcoin was up 1.42% to $9,019.99, easing back from an intraday high $9,099.59 that fell short of testing the day’s first major resistance level of $9,143.85. It’s been relatively range bound since this morning’s high, with the cryptomarket lacking any major catalysts to spur a Bitcoin rally through the early part of the day.

For the day ahead, a move through to $9,100 would support a run at the day’s first major resistance level and a break out through to $9,200 levels, while Bitcoin continues to be some way off $10,000 levels for now.

Failure to move back through the morning’s intraday high $9,099.59 could see Bitcoin come under some selling pressure later in the day, with a fall back through to sub-$9,000 levels likely to see Bitcoin test the day’s first major support level of $8,710.58 and buyer appetite at the day’s 23.6% FIB Retracement Level of $8,750.

While the bullish trend has remained intact since Sunday’s swing lo, we will expect investors to remain sensitive to the news wires, anything negative likely to see Bitcoin pull back low $8,000 levels in response, the news wires tending to be on the more active side later in the day.

Looking across at the Futures market, the Cboe Bitcoin Futures April contract was up $130 to $9,040 at the time of writing, providing some support at current levels, though we will expect the futures market to have limited influence through the day, barring a material move south.

Elsewhere, Stellar’s Lumen, Litecoin and Ripple’s XRP bucked the trend early on, sitting in the red at the time of writing, while NEM’s XEM led the way with a gain of 5.73% to $0.30

Buy & Sell Cryptocurrency Instantly