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Bitcoin Sees Red but is looking to make a Move

By:
Bob Mason
Published: Mar 20, 2018, 06:27 UTC

A slow start to the day has seen the majority of the cryptos in the red this morning, though Bitcoin is looking to make a move, recovering from heavier losses as investors continue to focus on the G20.

bitcoin

It’s been an eventful few days across the cryptomarket, with regulatory news chatter ultimately providing much needed support at the end of the weekend, with Bank of England Governor Mark Carney’s assessment of the cryptomarket and the foreseen lack of contagion risk to the financial markets and global economy being taken as a green light by investors for governments to leave things status quo.

We’ve heard few governments consider status quo as a viable option however, so it remains to be seen whether there will be any major news hitting the wires, form the G20, of a coordinated global effort to increase cryptomarket oversight and look to address the current use of cryptocurrencies for criminal and terrorist activity.

Following Sunday’s 5.3% gain, Bitcoin gained 4.3% on Monday, to end the day at $8,561.85. An intraday high $8,718.74 pushed through the first major resistance level of $8,598.21, whilst falling short of the day’s 2nd resistance level of $8,916.42 and a move back to $9,000 levels.

The good news for investors was that sub-$8,000 support levels were untested, with an intraday low $8,114.17 supporting the bearish trend reversal on Sunday, with Bitcoin’s bullish trend intact in spite of this morning’s losses.

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BTC/USD 20/03/18 Hourly Chart

At the time of writing, Bitcoin was down 1.54% to $8,464.94, with major support and resistance levels yet to be tested through the early part of the morning.

Market sentiment through the morning has deteriorated, with comparisons to the dot.com crash hitting the news wires doing little to provide support, while G20 chatter on the cryptos has remained relatively silent since Carney’s comments.

For the day ahead, the markets will undoubtedly be jittery as the G20 Summit continues, with the possibility of negative news hitting the wires at any time posing a real threat to the recent gains that led to Bitcoin hitting a swing hi $8,718.74 on Monday.

A pullback to the day’s 23.6% FIB Retracement Level of $8,389.9 would certainly be another test of support, with the negative sentiment across the market likely to see Bitcoin find few buyers, bringing the day’s major support level of $8,211.1 into play.

Moving back through the morning’s high $8,655.45 would support the current bullish trend and a move back into positive territory, though BoE Governor Carney would need to find other supporters at the G20 to ease some of the concern. One central bankers amongst 20 is certainly not enough.

For the Cboe Bitcoin Futures April contract, this morning’s $75 gain to $8,520 will provide some support through the middle part of the day.

Elsewhere, it was red across the board, with Ripple’s XRP down 6.38% and Ethereum down 3.7%, while NEM’s XEM rebounded from heavy early losses, up 7.49% at the time of writing.

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About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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