Bitcoin down again as Investors shun progress

Bitcoin down again, as a broad market sell-off takes its toll. Sentiment towards a continued shift in the regulatory landscape having kicked off the bullish trend reversal.
Bob Mason
BTC/USD daily chart, May 10, 2018

Bitcoin slipped 2.41% on Tuesday, following Monday’s 0.18% fall, to end the day at $8,462.

The day was all about the Bitcoin Cash hard fork, or so investors thought, with the negative reaction to news from South Korean regulators at the end of last week and the start of this week continuing to overshadow the advancements and enhancements made across the cryptomarket.

An early rise through to a morning high $8,855.7 saw Bitcoin fall short of the 38.2% FIB Retracement Level of $8,890 and the day’s first major resistance level at $8,944.4 before the afternoon sell-off took its toll, Bitcoin failing to touch $9,000 level for a 4th consecutive day.

The afternoon sell-off was kinder to Bitcoin than its peers, Bitcoin pulling back through the 23.6% FIB Retracement level of $8,628 to an intraday low $8,415, leaving the day’s first major support level at $8,330.9 untested and holding well above $7,000 levels last struck on 19th April.

For those wondering where the smart money should have gone ahead of the Bitcoin Cash hard fork, Bitcoin is up just 26% since the early April $6,500.2 low, while Bitcoin Cash is up 108.02% from early April’s $600.1 low and the divergence would have been a lot more if it hadn’t been for the material shift in investor sentiment at the turn of the week.

Bitcoin’s still the star and, with Bitcoin Cash sitting in 4th place by market cap, there’s still a long way to go before Bitcoin Cash can knock big brother off its perch.

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At the time of writing, Bitcoin was down 3.12% to $8,203.2, with Tuesday’s sell-off spilling over to the early hours of this morning.

Bitcoin tumbled through the day’s first major support level at $8,299.43 and the second major support level at $8,136.87 to a morning low $8,100, before recovering to $8,200 levels, with Bitcoin not out of the woods just yet this morning, the partial recovery failing to pull Bitcoin back through the day’s first major support level at $8,299.43.

While the morning sell-off has abated in the last hour, Bitcoin will need to move back through the day’s first major support level at $8,299.43 to support a run at the morning’s $8,492.7 high to bring the 23.6% FIB Retracement Level of $8,628 and the day’s first major resistance level at $8,740.13 into play, though broader market sentiment will need to see a vast improvement for selling pressure to not lead to a pullback at the 23.6% FIB.

Failing to move back through to $8,300 levels in the middle of the day could see another afternoon sell-off, which would bring sub-$8,000 support levels into play.

The good news for Bitcoin investors is that Bitcoin has a greater chance of being classified as a true cryptocurrency by regulators than many of its peers, the bad news is that exchanges are unlikely to ditch the rest to avoid falling under the purview of the likes of the SEC.

Bitcoin Cash is winning the battle for now, but the true battle will be in the playing fields and adoption as an alternative to fiat money. Bitcoin Cash has certainly made a move, putting the ball in the court of Bitcoin’s core developers.

Elsewhere in the markets, Bitcoin Cash recovered from heavier losses early on, down 5.83%, with DASH down 5.66% in what’s another sea of red across the top of the crypto board.

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