Bitcoin – No New is Good News as the EU Gives the Majors a BreakBitcoin has another positive start to the day, though holding on to key levels through the morning will be needed to avoid a reversal later in the day.
Bitcoin continued its recovery from the previous week’s losses, gaining 2.44% on Thursday to end the day at $6,489, the moves through the week bucking the trend across the broader market, with Bitcoin seeing just 1-day in the red through to the end of Thursday.
A start of a day move through to $6,400 levels saw Bitcoin break through the day’s first major resistance level at $6,391.33 before easing back to $6,300 levels, the day’s low $6,333.4 coming at the start of the day.
Supporting a broad based market recovery, Bitcoin rallied through the late morning to an early afternoon intraday high $6,528.4, breaking through the first major resistance level at $6,391.33 and second major resistance level at $6,449.27, before easing to an afternoon low $6,413.3.
On the day, holding on to $6,400 levels through the afternoon was key to ending the day just shy of $6,500 levels and avoiding a reversal that has become a common theme late in the day off the back of any intraday gains.
Market anxiety over the EU Finance Ministers’ meeting on Thursday eased as the day progressed, supporting the 2nd half of the day rebound across the crypto majors, with the news wires silent on the discussions behind closed doors, fears of an intent to roll out heavy handed EU specific rules and regulations for the cryptomarket having contributed to the downward pressure through the first half of the week.
No news was good news as far as investors were concerned, with any news that has trickled from EU Finance Ministers suggesting that intentions are not to cripple the market.
At the time of writing, Bitcoin was up 0.96% to $6,551, with momentum from Thursday continuing into the early hours. Bitcoin moved from a start of a day low $6,460 to an early morning high $6,580 before easing back, with resistance at the day’s first major resistance level at $6,567.13 kicking in early.
For the day ahead, a move back through the day’s first major resistance level at $6,567.13 would bring $6,600 levels into play, while we would expect Bitcoin to fall short of the day’s second major resistance level at $6,645.27 barring particularly positive news hitting the crypto wires. With investors still needing to consider a number of lingering issues that could lead to a reversal, some profit taking off the back of this week’s gains may limit Bitcoin’s gains on the day.
Failure to break back through the day’s first major resistance level at $6,567.13 could see Bitcoin pullback through the morning low $6,460 to bring sub-$6,400 levels and the day’s first major support level at $6,372.13 into play, while we would expect Bitcoin to steer clear of sub-$6,300 levels in the event of a reversal unless there are any negative announcements from regulators through the day.
For the Bitcoin bulls, holding above $6,450 would be key in the event of a middle of the day reversal, with Bitcoin and the broader market likely to find little support should the cryptomarket get hit with unexpected regulatory updates.