Bitcoin Looks Set for a Move. Can the Bulls Fight off the Bears?

Things had been looking up for Bitcoin from the 2^nd half of the day on Friday, with Bitcoin rallying through to a middle of the day $9,020 high on Saturday, before a late afternoon sell-off that gripped, not just Bitcoin, but the broader market.

The day’s high failed to break through the first major resistance level of $9,161.65, as investors locked in gains that led to Bitcoin falling to an intraday low $8,505, before a slight recovery to $8,541.96. The day’s 4.22% fall, reversed Friday’s 2.64% gain, with the bearish trend formed from Wednesday’s swing hi $9,188.1 resuming.

While Bitcoin managed to avoid falling through the day’s first major support level of $8,489.16, there was certainly some need of support to avoid a pull back through Friday’s $8,200 low.

Concerns over what lies ahead for Binance and South Korea’s investigation into banks involved in the cryptomarket are immediate concerns, whilst the U.S government’s plans to include digital currency addresses of sanctioned companies and individuals into OFAC just adds to the market worries.

The move will raise many questions and brings more uncertainty to an already uncertain outlook, with cryptocurrency investors having to dig in through the summer as the market looks ahead to the roll out of global regulations, agreed as an action plan during last week’s G20

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At the time of writing, Bitcoin was up 0.09% to $8,554.54, with Bitcoin managing to hold above the day’s 23.6% FIB Retracement Level of $8,482.9. Moves through the morning have been relatively minor, with Bitcoin range bound as investors consider their next move.

Any signs of a run at the day’s $38.2% FIB Retracement Level of $8,617.6 would support a run at the day’s first major resistance level of $8,872.97, which brings a move back through to $9,000 levels into play.

Bitcoin’s failure to close at $9,000 levels since 14^th March does question whether investors would support $9,000 levels going into Monday, with the news wires ready to hit the markets with more updates on Binance and from South Korea and even the U.S.

Failure to move through $8,600 levels will likely lead to another late in the day sell-off, with the only hope for Bitcoin investors being that Friday’s Cboe Bitcoin Futures April contract close of $8,620 will provide some degree of support before the day’s end.

We’ve yet to see the weekend rally and, the bulls haven’t disappointed for quite some time, so an afternoon move may well be on the cards, but we will expect the rally to be shallower, with Bitcoin likely to face plenty of resistance at the top end of the last week’s highs.

Elsewhere, there was some red on the board, with NEM’s XEM, Cardano’s ADA, Monero and Dash in the red at the time of writing, while market laggard Ripple’s XRP found support through the early part of the day, up 1.21% to lead the way.

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