Bitcoin Down but not out as Support Kicks In

Bitcoin dived again on Thursday, falling 5.86% off the back of Wednesday’s 7.8% decline, with 4 consecutive days of decline, seeing Bitcoin down 18.33% from Monday’s open through to Thursday’s end of day $9,324.02.

The only good news for Bitcoin investors on Thursday was the fact that Bitcoin managed to hold on to $9,000 levels through to the close, with Bitcoin having fallen with ease through its first major support level of $9,253.64 to an intraday low $9,078.95 falling .

It hasn’t just been down to the SEC statement, issued on Wednesday, with news hitting the wires of Congress’s plans to discuss Initial Coin Offerings next Wednesday an indication of how much time the U.S government is spending on the cryptomarkets at present.

We are certainly expecting some changes and a roll out of a suite of regulations and it’s the uncertainty that has pressured the cryptomarkets once more.

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At the time of writing, Bitcoin was down 5.23% to $8,800, with Bitcoin managing to recovery from an intraday low $8,366 hit this morning.

Panic had gripped investors since yesterday’s sell-off that saw Bitcoin tumble from $9,940.95 to $9,078.95 in just a couple of hours.

This morning’s intraday low fell through its 1^st major support level of $8,885.3 and 2^nd support level of $8,446.6, which had the alarm bells ringing before Bitcoin found some support at $8,366 and managed to avoid testing the $8,000 psychological support level.

It’s certainly hard to see Bitcoin managing to move back through its support levels and begin to make a move towards its first major resistance level of $9,956.4, with the best that investors can hope for being a move back through to $9,000 levels by the close.

With this morning’s Swing Lo of $8.366, for Bitcoin to begin to make a move, a move back through to its 23.6% FIB Retracement Level of $9,149.99 would be needed, though a break back through to $9,000 will likely face plenty of resistance.

As things stand and based on the negative sentiment that has hit the market, we will expect Bitcoin to continue to struggle through the day, with 1^st and 2^nd support levels in play, while we will expect Bitcoin to steer clear of the 3^rd major support level of $7,375.6.

Looking across at the Cboe Bitcoin Futures, the March contract was down $590 to $8,850, which will yet again provide little support to Bitcoin through the morning.

Elsewhere, while there was plenty of red across the crypto boards, while NEM’s XEM continued to buck the trend this morning, with gains of 3.45% at the time of writing, NEM investors seemingly disinterested in what’s driving the rest of the cryptomarkets.

On the flip side, Stellar’s Lumen has seen the biggest slide at the time of writing, down 8.2%, Stellar’s Lumen traditionally seeing more sizeable swings that the rest of the majors.

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