Bitcoin Looking to Break Free from the Bear

Bitcoin finally managed to find some much needed support on Thursday, with Bitcoin gaining 1.08% to end the day at $7,576.1, partially reversing Wednesday’s 5.94% slide.

A positive start to the day saw Bitcoin move through to a morning high $7,729.8, falling short of the day’s first major resistance level at $7,881.3, before reversing to an intraday low and new swing lo $7,260 in the late morning, Bitcoin finding much needed support at the day’s first major support level at $7,264.

Bitcoin’s mid-day rally, off the back of the day’s low, saw Bitcoin recover to $7,500 levels by the day’s end, with the moves through the day leaving the day’s first major resistance level at $7,881.3 untested and some distance yet to travel to bring the 23.6% FIB Retracement Level of $7,906.4 into play.

Negative news through the early hours was the ultimate cause to the price reversal to the day’s low, with reports of the U.S Justice Department investigating price manipulation in the cryptomarket doing the damage, recent cryptomarket news having done little to restore investor appetite ahead of an expected flurry of regulator activity this summer.

For the Bitcoin bulls and the broader, the afternoon recovery was good news, but with regulators and governments now looking more closely at the market and practices, more bad news is likely to be on the horizon.

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At the time of writing, Bitcoin was up 0.62% to $7,624.0, with moves through the day relatively range bound, a morning $7,516.6 low and $7,654.1 high steering clear of the day’s first major support level at $7,314.13 and first major resistance level at $7,783.93.

With Bitcoin’s new swing lo $7,260 struck on Thursday and the afternoon recovery, which came in spite of concerns of investigations into possible price manipulation practices across the cryptomarket, the floor in the current bearish trend may have currently been struck, though sentiment is expected to deteriorate as governments and regulators roll out measures to increase oversight and control over the market.

For the day ahead, a break through the day’s first major resistance level at $7,783.93 would be needed to bring the 23.6% FIB Retracement Level of $7,906.4 and $8,000 levels into play, a move needed to affirm a near-term bottoming out of the bearish trend.

Failure to move through to $7,700 levels could weigh on Bitcoin later in the day, with a lack of upward momentum likely to see Bitcoin pullback to the morning’s low $7,516.6 and bring the day’s first major support level at $7,314.13 into play.

We would expect support to hold Bitcoin off from striking a new swing lo, barring materially bad news hitting the wires through the day.

Elsewhere in the cryptomarket, Stellar’s Lumen was on the move, up 2.02% at the time of writing, with Ethereum up 1.72%, while NEM’s XEM, Cardano’s ADA and Bitcoin Cash lingered in the red to buck the broader market trend.

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