Bitcoin – In the Red, but Looking Ready for a Move

Bitcoin sees red early, as Saturday’s reversal continues into the early hours, the Bitcoin bulls looking to hold on to positive territory for the week.
Bob Mason

Bitcoin fell by 3.08% on Saturday, reversing most of Friday’s 4.06% gain, to end the day at $6,383.3, the day’s losses leaving Bitcoin with just a 1.1% gain for the current week, Monday through Saturday.

A start of a day intraday high $6,619.5 came up short of the first major resistance level at $6,679.4, with Bitcoin and the broader market hitting reverse through the morning, Bitcoin sliding through the day’s first major resistance level at $6,376.5 to a late afternoon intraday low $6,300, before recovering.

Support at $6,300 saw Bitcoin break back through to $6,400 levels and an afternoon high $6,435.9, though with the bears in control the Friday rally was cut short, with investors continuing to lock in profits on any momentum driven rallies, Friday’s moves having come in spite of no positive news hitting the wires to shift sentiment across the cryptomarket.

The reversal seen across the broader market on Saturday led to Bitcoin’s dominance recover to 52% at the time of writing, with Bitcoin’s 3.08% loss considered minor relative to the likes of Cardano’s ADA, DASH and Ripple’s XRP that saw double digit losses on Saturday.

For Bitcoin and the Bitcoin bulls, while the reversal through the early part of the day on Saturday had likely come off the back of some money coming off the table, the continued sell-off through the morning and early afternoon would have been of greater concern.

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At the time of writing, Bitcoin was down 0.37% to $6,367.3, with Bitcoin falling from a start of a day morning high $6,395 to a morning low $6,309.3 before recovering, the moves through the early part of the morning leaving the day’s major support and resistance levels left untested.

For the day ahead, a move through to $6,400 levels and $6,434 would support a run at $6,500 levels to bring the first major resistance level at $6,568.53 into play, though for Bitcoin to break through to $6,400 levels, sentiment across the broader market will need to improve, Bitcoin having tracked the broader market in recent weeks as the bears dominate.

Failure to recover from the early loss to move through to $6,400 levels could see Bitcoin take a bigger hit later in the day, with any pullback through to sub-$6,300 levels bringing the first major support level at $6,249.03 into play.

For Bitcoin, while there has been plenty of support at $6,300, the Bitcoin bears will likely be eyeing sub-$6,200 levels to bring $5,000 levels back into play should Bitcoin continue to pullback and slide through the day’s first major support level, any pullback to sub-$6,300 levels a negative signal for the day.

Elsewhere in the cryptomarket, Ripple’s XRP bounced back from early losses, up by 1.09% at the time of writing, with Cardano’s ADA and EOS also bucking the trend, with gains of 0.47% and 0.07% respectively, the rest of the majors sitting in the red through the early morning.

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