Bitcoin – In Desperate Need of a Breakout from its Current Ranges

Bitcoin kicked off the day in the red through the early hours, with Monday’s late sell-off continuing through the early hours of the day, Bitcoin needing to move back through to $6,700 levels to avoid a more material sell-off.
Bob Mason

Bitcoin fell by 0.73% on Monday, following Sunday’s 0.85% fall, to end the day at $6,657.8, with Bitcoin failing to hold on to $6,700 levels by the day’s end.

Moves through the day were not too dissimilar to those seen on Sunday, with Bitcoin relatively range bound through to the late evening, highs and lows through the vast majority of the day leaving the day’s first major support and resistance levels untested.

Of greater significance was the fact that Bitcoin failed to take a run at the 23.6% FIB Retracement Level of $6,757 until a spike late in the day that was seen across the broader market.

Bitcoin broke through the 23.6% FIB Retracement Level of $6,757 all too briefly, with an intraday high $6,820, before sliding through the day’s first major support level at $6,646.17 to an intraday low $6,616.6, to leave Bitcoin at sub-$6,700 levels, whilst Bitcoin managed to move back through the first major support level by the day’s end.

The news wires were on the quieter side, with Bitcoin succumbing to yet another late in the day sell-off, as investors continue to look towards governments and regulators, fretting over the type of unified G20 rules and regs that the cryptomarket will fall under.

For the Bitcoin bulls, the minor losses relative to its peers would have provided some comfort, though with Bitcoin pulling back from the 23.6% FIB Retracement Level and sub-$6,700 levels by the day’s end, the extended bearish trend, formed at 5th May’s swing hi $9,999 remained intact, Bitcoin needing to move back through to $7,000 levels to begin forming a near-term bullish trend.

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At the time of writing, Bitcoin was down 0.44% to $6,637.7, with Monday’s late in the day reversal continuing into the early hours of this morning.

Bitcoin pulled back to a morning low $6,625.4 before partially recovering, with the moves through the early part of the day leaving the day’s first major support and resistance levels untested early on.

For the day ahead, Bitcoin will need to move through to $6,698 to support a run at the 23.6% FIB Retracement Level of $6,757 and the day’s first major resistance level at $6,679.67 to bring $7,000 levels into play, Bitcoin last hitting $7,000 levels back on 11th June.

Failure to move through $6,698 to take a run at the 23.6% FIB Retracement Level of $6,757 could see Bitcoin take a hit through the early afternoon, to bring the day’s first major support level at $6,576.27 into play.

The continued sell-off on any attempts at a breakout from the 23.6% FIB Retracement Level of $6,757 supports the extended bearish trend and, while the cryptomarket waits on for the planned roll out of the much talked about unified rules and regs from the G20, a move out of the current ranges is going to be needed for Bitcoin to avoid a fall back to sub-$6,000 levels.

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