Bitcoin Ready to Move – $7,700 the Target
Bitcoin gained 1.48% on Thursday, reversing Wednesday’s 1.24% fall, to end the month of May down 19% at $7,484.6.
It was a day of two halves for Bitcoin, an early morning rally seeing Bitcoin move through to an intraday high $7,599.7, breaking through the day’s first major resistance level at $7,531.43 and hold through the majority of the day, before a late in the day reversal saw Bitcoin pullback to $7,400 levels by the day’s end.
Bitcoin’s early moves provides some support towards a bottoming out following May’s slide, with some much needed support having come from news from South Korea’s planned lifting of the ban on initial coin offerings.
While the ICO ban lifting is a positive, giving hope to a softening stance on the cryptocurrency market, plenty of uncertainty over regulations on cryptocurrency exchanges remain, with many key jurisdictions having yet to reveal their intentions going into the second half of the year.
At the time of writing, Bitcoin was up 0.02% to $7,487.0, with Bitcoin managing to recover from an early $7,439.9 low to hold off from testing the day’s first major support level at $7,348.5.
A start of the day $7,525 high came up short of the day’s first major resistance level at $7,610.2 and more importantly, Bitcoin continued to fall well short of the 23.6% FIB Retracement Level of $7,738, leaving the bearish trend formed at 5th May’s $9,999 intact going into June.
Thursday’s profit taking late in the day will be of some concern, extended rallies being few and far between, with Bitcoin needing to break through the 23.6% FIB Retracement Level of $7,738 to $8,000 levels to begin a bearish trend reversal.
For the day ahead, a move through to $7,530 would support a run at the day’s first major resistance level at $7,610.2, while sentiment across the broader market will dictate whether a break out to bring the day’s second major resistance level at $7,735.8 and the 23.6% FIB Retracement Level of $7,738 is on the cards.
Recent moves suggest that Bitcoin will struggle to break through to $7,700 levels, with investors quick to lock in profits before the end of the day, though the strength of any rally will ultimately influence, any extended period within tight ranges leading to investors hitting the sell-button.
Failure to move through $7,530 to take a run at the day’s first major resistance level will likely see Bitcoin go into reverse through the latter part of the day, with the day’s first major support level at $7,348.5 in play this afternoon.
The Bitcoin bulls’ first target will be to break down resistance at $7,500.
Elsewhere, NEM’s XEM led the way with a gain of 2.75% at the time of writing, with NEO and DASH also in positive territory to buck the trend amongst the majors, while Stellar’s Lumen and Cardano’s ADA saw the heaviest losses through the early morning, down 2.07% and 1.92% respectively.