Bitcoin Moving Sideways as Investors Fear another Sell-Off

Bitcoin has been moving in tight ranges this morning, with the broader market mixed at the start of the day as investors tread carefully, with concerns of another sell-off later in the morning weighing on appetite for the cryptos.
Bob Mason
BTC/USD daily chart, April 06, 2018

Bitcoin fell by 3.63% on Monday, more than reversing Sunday’s 1.82% gain, as the cryptomarket turned bearish by late morning, reversing the short-term bullish trend formed through the weekend that saw Bitcoin recover to $7,000 levels.

The early morning rally saw Bitcoin hit an intraday high $7,189, moving through the 23.6% FIB Retracement Level of $7,077.17 and the 1st major resistance level of $7,124.68.

A late morning reversal saw Bitcoin fall from the day’s $7,189 high to $6,700 in just a few hours, Bitcoin finding little support at the $7,000 psychological level or at the day’s 1st major resistance level of $6,915 and 2nd support level of $6,800, with further declines later in the day seeing Bitcoin hit an intraday low $6,611 before a partial recovery by the day’s end.

Monday’s $6,772 close remained below the 1st and 2nd key support level and more importantly, failed to recover to $7,000 levels, the moves through the day continuing to affirm the longer-term bearish trend formed back at March’s swing hi $9,188.1.

Another battle lost by the Bitcoin bills, the start of Monday’s reversal being attributed to the U.S tax season, with a number of cryptonites having forecasted a reversal ahead of the U.S mid-April tax deadline.

It’s not been the first time that Bitcoin went into reverse on testing key resistance levels and if the forecasts are right, the Bitcoin bulls could be in for some more pain before market conditions begin to improve.

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At the time of writing, Bitcoin was down 0.18% to $6,758, in what has been a relatively range bound start to the day, a morning low $6,711.6 and high $6,809.3 failing to test major support and resistance, as the market considers whether another sell-off is on the cards later today, Monday’s slide having been attributed to U.S investors selling down to cover crypto related tax charges.

For the Bitcoin Bulls, $7,000 continues to be the key milestone, with a move back through an early $6,809.3 high likely to signal a run back through to $7,000 levels and test selling pressure at the 23.6% FIB Retracement Level of $7,07717.

The day’s first major resistance level of $7,103.67 may well be a reach too far for Bitcoin today, with the market still under pressure ahead of the deadline for U.S taxes and expectations of a tighter regulatory environment in the summer.

A failure to break through to $7,000 levels will likely test investor appetite later in the day, with a pullback to test the day’s first major support level of $6,525.67 quite possible should sentiment not improve through the late morning.

Moves through the early part of the day look somewhat favourable for the Bitcoin bulls, but there’s plenty of uncertainty over how much more U.S investors need to offload.

Looking across at the Cboe Bitcoin futures April contract, the morning’s $125 rise to $6,760 will provide some comfort, though any sell-off will be reflected in Bitcoin ahead of the futures market.

Elsewhere, DASH and Stellar’s Lumen were leading the way with gains of 0.72% and 0.65% respectively, with Ethereum and Bitcoin Cash also in positive territory as the market tiptoes through the start of the day.

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