Bitcoin in the Red, but it May not Stay that Way

It was quite a recovery by Bitcoin on Thursday, with memories of Bitcoin sitting at sub-$6,000 levels still fresh in the minds of investors, testing investor resolve following Wednesday’s 10.3% fall in response to the prospects of a material shift in the regulatory landscape in the U.S.

The recovery was certainly not a smooth one however, with Wednesday’s negative sentiment plaguing the Bitcoin and the markets through the early part of Thursday.

Bitcoin slid 6.3% in the early hours to an intraday low $7,682, which may have avoided the day’s first major support level of $7,652, but certainly needed investors to jump in to avoid a more material slide to the day’s 2^nd support level of $7,095 that could have been a recipe for disaster for Bitcoin investors and the broader market.

Bitcoin managed to reverse the early slide through the morning to move back to $8,000 levels and hit an intraday high $8,425 in the middle of the day. The recovery was not enough to test the day’s first major resistance level of $9,059.69, but was significant enough to move through the day’s 23.6% FIB Retracement Level of $8,406.78, testing investor sentiment through the afternoon.

The markets were still cagey, following Wednesday’s losses, with uncertainty over what lies ahead continuing to weigh through the day, but with Bitcoin managing to close out the day at $8,287.22, gaining 1.1%, it was certainly a lot more positive than the start of the day had suggested.

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It was another slow start to the day for Bitcoin this morning, which was down 0.67% to $8,209.97 at the time of writing.

An early fall to $7,914.08 was the only real negative however, with Bitcoin able to recover to $8,209.97, hovering at the day’s 23.6% FIB Retracement Level of $8,203.56. The morning’s $8,341.13 high fell short of the day’s first major resistance level of $8,580, which has ultimately pinned Bitcoin back early on.

For the day ahead, a move through to the day’s 38.2% FIB Retracement Level of $8,526 and first major resistance level of $8,580 would be needed for Bitcoin to have a run at the day’s 2^nd resistance level of $8,874 and begin to eye $9,000 levels.

Failure to move through to $8,500 levels will likely add pressure later in the day that would see Bitcoin test sub-$8,000 support levels going into the weekend.

Looking across at the Cboe Bitcoin Futures market, the April contract is down $70 at $8,220 which will be of influence this morning, with investors likely to be wary ahead of the afternoon and what the news wires may deliver.

The news has been on the quieter side this morning, which should provide some support however, which could ultimately lead the way for the cryptomarkets and the Futures markets.

Elsewhere, Ripple’s XRP continues buck the trend, up 0.75% this morning, while NEM’s XEM has seen the heaviest losses, down 3.08%, with Bitcoin Cash not far behind, down 2.02%.

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