Bitcoin – More Pain AheadBitcoin in the red again as the bears continue to control the cryptomarket and extend Bitcoin’s bearish trend formed back in early May.
Bitcoin gained 1.54% on Monday, partially reversing Sunday’s 10.22% slide, to end the day at $6861.7.
Following the broad based market sell-off through Sunday, by historical standards Bitcoin was relatively range bound through the day, with the day’s intraday low $6,629.7 managing to hold well above the day’s first major support level at $6,401.07 as investors looked from the side lines in fear of another afternoon sell-off.
With Bitcoin finding support through the day, the avoidance of an afternoon pullback saw buying interest build late in the day, supporting a Bitcoin move through to an intraday high $6,899 in the final hour.
The late bounce spared Bitcoin from another day in the red, though with Bitcoin falling well short of the 23.6% FIB Retracement Level of $7,417 and the day’s first major resistance level at $6,963.9, the bears remained in control through the day.
For the Bitcoin bulls, avoiding the day’s first major support level would have provided some comfort, though with the prospects of a near-term run at $7,000 levels and the 23.6% FIB Retracement Level of $7,417 looking slim at best, the extended bearish trend formed in early May’s swing hi $9,999 continues to remain intact.
At the time of writing, Bitcoin was down 0.61% to $6,831.1 in what’s been another relatively range bound start to the day, Bitcoin’s morning low $6,784.1 steering well clear of the day’s first major support level at $6,694.6, with the morning’s $6,873.4 high falling well short of the day’s first major resistance level at $6,693.9 and more importantly, the 23.6% FIB Retracement Level of $7,417.
For the day ahead, a move back through the morning’s $6,873.4 high would support a run at the day’s first major resistance level at $6,693.9 to bring $6,800 levels into play, though $7,000 levels and the 23.6% FIB Retracement Level of $7,417 will continue to remain out of reach until sentiment improves and that’s going to need to come off the back of some clarity over what regulations lie ahead for the cryptomarket.
Failure to move back through the morning’s high would likely see Bitcoin give up Monday’s gains, with a pullback through the morning’s $6,784.1 low likely to bring the day’s first major support level at $6,694.6 into play before any recovery, with a new swing lo on the cards should Bitcoin fail to draw interest at current levels.