Bitcoin – Relief or Tears?

Bitcoin is back in the red and a hold at $6,400 levels through the morning will be needed to reverse the losses later in the day.
Bob Mason
Cryptocurrencies

Bitcoin gained 4.2% on Thursday, to reverse most of Wednesday’s 6.62% slide, to end the day at $6,544.6 and bring an end to a 3 day run of heavy losses.

In spite of Thursday’s partial recovery, the bears remain firmly in control, with Bitcoin having fallen on 10 of the last 12 days.

A relatively range bound morning saw Bitcoin fail to break through to $6,400 levels, leading to an early afternoon slide to an intraday low $6,183.

With the day low $6,183 holding above the first major support level at $6,028.03, a recovery through the afternoon saw Bitcoin break through the day’s first major resistance level at $6,620 to an intraday high $6,628 before pulling back to $6,500 levels.

For the Bitcoin bulls, while Bitcoin failed to break back through the 23.6% FIB Retracement Level of $6,757, steering clear of the day’s first major support level at $6,028 and sub-$6,000 levels was of significant on the day.

The upside for Bitcoin and the broader market came off the back of speculative moves based on valuation rather than positive news hitting the wires, which will leave Bitcoin and the broader market exposed to the prospects of a reversal should the relief rally fail to find legs.

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At the time of writing, Bitcoin was down 2.1% to $6,396.2, with Thursday’s late pullback continuing into the early hours, Bitcoin sliding to a morning low $6,374.4 before steadying.

Moves through the early morning left the day’s first major resistance level at $6,720.72 and first major support level at $6,275.73 untested, with the 23.6% FIB Retracement Level of $6,757 also out of reach.

For the day ahead, a move back through to a start of a day morning high $6,573.8 would support a run at $6,600 levels to bring the first major resistance level ate $6,720.72 into play, though Bitcoin will need to break back through to $6,400 levels and hold through the late morning to support an afternoon relief rally.

Failure to break back through to $6,500 levels later in the day could see Bitcoin’s Thursday relief rally reverse, with any sell-off likely to see Bitcoin pullback through to sub-$6,300 levels to bring the first major support level at $6,275.73 into play.

Barring any materially negative news hitting the wires, Bitcoin will likely continue to avoid touching sub-$6,000 levels going into the weekend, while the bears remain firmly in control, with a break out from the 23.6% FIB Retracement Level of $6,757 to $7,000 levels needed to bring a near-term bullish trend into play.

Elsewhere, it was a sea of red across the majors, with Litecoin and Ethereum seeing the lightest losses, down 0.76% and 0.99% respectively, while NEO was amongst those with the heaviest losses, down 3.27% at the time of writing.

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