Bitcoin Sees Red Early as the Market Hits Reverse

It’s a bad start to the day for Bitcoin and the broader markets, though things will have to get much worse for Bitcoin to give up the week’s gains.
Bob Mason
bitcoin

Bitcoin gained just 0.58% on Saturday, following on from Friday’s 2.56% rise, to end the day at $6,732, Bitcoin’s highest close since 5th August’s $7,023.9.

Three consecutive day of gains eased pressure on the Bitcoin bulls that had been at the mercy of the SEC late last week, the late in the week moves leading Bitcoin to a 3.81% gain for the current week, Monday through Saturday.

A continuation of Friday afternoon’s rally saw Bitcoin move through to an early intraday high $6,799.7, breaking through the 23.6% FIB Retracement Level of $6.757 to test the day’s first major resistance level at $6,798.27 before easing back to a mid-morning intraday low $6,670.

Holding well above the first major support level at $6,520.67, a relatively range bound second half of the day saw Bitcoin continue to attempt breakouts from the 23.6% FIB Retracement Level of $6,757.

The continued failure to move through to $6,800 levels to bring $7,000 levels into play remains an issue for the Bitcoin bulls, with range bound moves tending to turn out negative for Bitcoin and the broader market during the extended bearish trend formed back at 5th May’s swing hi $9,999.

In spite of the steady ship following the SEC’s flip flopping at the end of last week, the reality remains that the prospects of the SEC approving any of the 9 Bitcoin ETFs rejected remains slim ahead of the G20’s planned roll out of unified rules and regulations and the decision to review the rejections without a time line could be down to uncertainty over when the unified cryptomarket rules and regs will become effective, the G20 having already pushed back the original deadline of 31st July.

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At the time of writing, Bitcoin was down 1.65% to $6,622.0, with Bitcoin sliding from a start of a day morning high $6,789 to an early morning low $6,600, the early moves seeing Bitcoin fall through the first major support level at $6,668.1 to call on support at the second major support level at $6,604.2 and avoid falling through to $6,500 levels.

For the day ahead, a move back through to $6,733 would support another run at the 23.6% FIB Retracement Level of $6,757 and the first major resistance level at $6,797.8 to bring $6,800 levels into play, though Bitcoin will need to hold on the $6,600 levels through the remainder of the morning to support a second half of a day recovery.

Breaking back through to $6,700 levels in the early part of the day will be key for Bitcoin to draw investors in later in the day.

Failure to hold on to $6,600 levels could see Bitcoin slide through to sub-$6,500 levels to bring the third major support level at $6,474.5 into play, though sentiment across the broader market will need to materially deteriorate for Bitcoin to cough up $6,500 levels on the day.

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