Bitcoin Sees Red Again. Is a Weekend Rally around the Corner?

Bitcoin starts the weekend off in the red, with investors having taken quite a hit through the week, the Bitcoin bulls in dire need of a weekend rally to ease the pain.
Bob Mason
Nobel Laureate

Bitcoin slipped 1.58% on Friday, reversing Thursday’s 1.08% gain, to end the day at $7,456.8.

A move through to a morning high $7,654.1 fell short of the day’s first major resistance level at $7,783.93 and 23.6% FIB Retracement Level of $7,906.4 before reversing. Bitcoin fell to an intraday low $7,318.2 in the late morning to call on support at the day’s first major support level at $7,314.13 before recovering to $7,400 levels, the second half of the day relatively range bound, with a downward bias.

The Bitcoin bears ruled the roost through the week, with Bitcoin falling 12.5% Monday through Friday, supporting the extended bearish trend formed at 5th May’s swing hi $9,999, with Bitcoin failing to test resistance at the 23.6% FIB Retracement Level for a second consecutive day, while also striking a new swing lo $7,260 on Thursday.

Negative news through the week included talk of price manipulation and an investigation by the U.S Department of Justice into trading practices, reminding investors of how eager governments and regulators are to take control and introduce standards into the cryptomarket in the months ahead, the roll out expected to roil the markets.

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At the time of writing, Bitcoin was down 0.51% to $7,418.4, an early morning $7,467.3 high falling short of the day’s first major resistance level at $7,634.53 and the 23.6% FIB Retracement Level of $7,906.4 before easing.

Negative sentiment from the week continued through to the early part of the weekend, Bitcoin falling to a morning low $7,368.6 before recovering to $7,400 levels, while Bitcoin avoided the day’s first major support level at $7,298.63.

For the day ahead, a move through to $7,470 would support a run at the day’s first major resistance level of $7,634.53, though gains are likely to lead to investors locking in profits early, which will likely leave the 23.6% FIB Retracement Level of $7,906.4 out of reach, Bitcoin’s intraday highs having been on a downward trend through the week.

Failing to move through to $7,600 levels will likely see Bitcoin pullback to $7,300 levels through the middle part of the day, bringing the day’s first major support level of $7,298.63 into play before any recovery, the day’s second major support level at $7,140.47 likely to be left untested through the day.

Investors will be looking out for the weekend rally to kick in, with Bitcoin needing to break through the 38.2% FIB Retracement Level of $8,306.3 to support a bearish trend reversal and draw investors back in from the side lines, the year’s extended bearish trends attributed to a general lack of catalysts to support the Bitcoin bulls.

Elsewhere in the markets, it was a mixed start to the weekend, with Stellar’s Lumen and Litecoin leading the way amongst the majors, with gains of 0.82% and 0.71% respectively, while DASH and NEO saw the greatest losses through the morning, down 2.19% and 1.55% respectively, Bitcoin’s early decline weighing on the broader market.

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