Bitcoin – No News is Bad News for the BullsNo news from the SEC leaves Bitcoin flat as investors search elsewhere for volatility and a source of income.
The extended summer continued on Tuesday, with Bitcoin gaining just 0.19%, following a flat Monday, to end the day at $6,459.1.
While the daily returns continued to reflect benign trading conditions, volatility continued to hit Bitcoin and the broader market through the day, with Bitcoin becoming victim to an early morning sell-off, the reversal seeing Bitcoin fall through the first major support level at $6,416.9 to sub-$6,400 levels and an intraday low $6,397.1 before finding support.
Bitcoin’s sub-$6,400 support continued to be resilient, with an early afternoon rally seeing Bitcoin break through the first major resistance level at $6,479 to $6,500 levels for the first time since 9th November’s $6,504.4 high before easing back.
While Bitcoin continues to find sub-$6,400 support to avoid closing out a day at sub-$6,400 levels, the reverse is true on the top side, with resistance at $6,500 continuing to be Bitcoin’s bugbear ahead of the much talked about SEC decision on the 9 Bitcoin ETF applications.
For Bitcoin and the broader market was some resilience in Bitcoin Cash through the day, a minor gain easing downward pressure ahead of tomorrow’s fork, while the war of words between the 2 sides of the hard fork, Bitcoin ABC and Bitcoin SV, continued through the day.
One does wonder what the SEC has to make of the Bitcoin Cash hard fork and events over the last week. Institutional money sitting in Bitcoin with a hard fork a possibility at any time in the future is of concern, particularly if there is a chance of disruption to Bitcoin itself.
At the time of writing, Bitcoin was up just 0.09% to $6,465, with moves through the early morning seeing Bitcoin fall to a morning low $6,441.7 before rising to a morning high $6,467.2, another range bound start to the day seeing Bitcoin steer clear of the day’s major support and resistance levels.
It’s another day where the news wires have been on the quieter side, with the SEC’s 5th November deadline for comments on the 9 Bitcoin ETF applications now 9-days ago, with no indications on whether any decision is immanent, leaving investors to continue to hang on.
For the day ahead, there’s unlikely to be any major shift in pattern, which should generate some interest across the other cryptocurrencies, with a number having seen some major swings of late.
Holding above the morning low $6,441.7 through the morning would support another run at $6,500 levels, while holding on to $6,500 levels may be an altogether different matter, with Bitcoin investors seemingly willing to accept the persistently tight ranges.
We could see some red should Bitcoin fall through the morning low $6,441.7 to bring sub-$6,400 levels into play, though with the day’s first major support level at $6,403.77, there’s going to need to be something skewed to the negative on the news front for Bitcoin to pullback to sub-$6,400 levels on the day.
Elsewhere, focus will continue to be on Bitcoin Cash and tomorrow’s hard fork, with hash rates and futures prices for Bitcoin ABC and Bitcoin SV the talk of the town.