Bitcoin on the Move, but $10,000 Seems Like a Tall Order

The Bitcoin Bears won the day on Monday, with a lack of direction through the early part of the day ultimately seeing Bitcoin pay the price, falling 4.67% to an end of day $9,090.23.

While there was a lack of direction through the early party of the day, Bitcoin managed to hit an intraday high $9,892, before going into reverse, with the day’s high falling short of the day’s first major resistance level of $10,043.

The slide in the latter part of the day was a heavy one, with Bitcoin falling 11.6% from the day’s high, to an intraday low $8,742.07, struck in the final hours of the day, testing the day’s first major support level of $8,782.

In spite of the late in the day sell-off, with investors looking to lock in profits before reaching key resistance levels, the bullish trend remains intact for now, with Bitcoin managing to close out the day at $9,000 levels again, while having touched sub-$9,000 levels for the 4^th consecutive day.

A lack of negative news certainly eased the pain through the day for Bitcoin investors, though a failure to move back through to $10,000 levels ahead of Wednesday’s Congressional hearing on cryptocurrencies and initial coin offerings may be a concern for the bulls.

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It’s been a better start to the day for the cryptomarket this morning, with Bitcoin up 3.38% to $9,428.65 at the time of writing, as the cryptomarket looks to recover from Monday bearish moves through the 2^nd half of the day.

With Bitcoin moving back through today’s 38.2% FIB Retracement Level of $9,341, a move through the 23.6% FIB Retracement Level of $9,552 would support a run at $10,000 levels later in the day, with Bitcoin’s first major resistance level sitting at $9,740.

Failing to move back through $9,552 could see Bitcoin buyers hold back and lead to a Bitcoin pullback through the 38.2% FIB Retracement Level. We will expect plenty of support at the day’s 62% FIB Retracement Level of $9,000, with the day’s first major support level of $8,591 some distance off at the time of writing, though with the volatility seen in the markets, support levels could come into play later in the day.

Looking across at the Cboe Bitcoin Futures March contract, today’s $525 gain to $9,380 will likely be considered a constraint, though with the April and May contracts sitting at $9,400 levels, there is some wriggle room for Bitcoin.

Elsewhere, the bullish sentiment was seen across the major cryptocurrencies, with NEM’s XEM leading the way, up 7.89% through the morning, with only a handful of the majors seeing gains of less than 2% in the early part of the day.

With Wednesday looming large, uncertainty over what will be discussed in Congress will be a factor to consider, with investors also needing to listen out for any negative news that could provide further support to market fears of a material shift in the regulatory landscape.

The Bulls are out, but the Bears are never too far away, in this market, to hit the reverse button.

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