Bitcoin – The Sell-off Takes a Break, but May Not be Over

Bitcoin is on the move, but whether it can hold on to today’s gains remains to be seen as the news wires continue to deliver bad news for the bulls.
Bob Mason
ETH/USd daily chart, June 11, 2018
Concept of digital currency. Bitcoin sign bubbles on a blured circuit board background.

Bitcoin fell by 3.83% on Wednesday, following Tuesday’s 4.87% fall, to end the day at $6,293.1.

Moves through the early part of the morning would have provided some hope to the Bitcoin bulls, following Tuesday’s sell-off, with Bitcoin hitting an intraday high $6,611.7 by mid-morning. A broad based market reversal in the late morning saw Bitcoin slide through the day’s first major support level at $6,358.8 and the second major support level at $6,178.8 to an intraday low and new swing low $6,107.9 before recovering to just shy of $6,300 by the day’s end.

For the Bitcoin bulls, there was very little comfort in the day’s moves, a new swing lo reaffirming the extended bearish trend, while the day’s high continued to fall well short of the 23.6% FIB Retracement Level of $7,278 that would need to be hit to raise hopes of a near-term bearish trend reversal.

Holding on to $6,000 levels was key on the day however, with any pullback to sub-$6,000 levels likely to have had far more significant ramifications near-term, the latest moves coming in spite of the fact that regulators in key jurisdictions have yet to roll out new policies, as talk of price manipulation does its rounds

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At the time of writing, Bitcoin was up 3.02% to $6,484.9, as investors jumped back in following a sizeable reversal that saw Bitcoin come within reach of sub-$6,000 levels for the first time since mid-November of last year, the latest swing lo also a 2018 low for Bitcoin.

A recovery from Wednesday’s swing lo $6,107.9 late in the day supported a positive start to this morning, with Bitcoin moving through to an intraday high $6,458 before easing back, the morning high falling short of the day’s first major resistance level at $6,567.23 and more importantly, the 23.6% FIB Retracement Level of $7,026.

For the day ahead, a break through the day’s first major resistance level at $6,567.34 would be needed to support a run at $7,000 levels and the 23.6% FIB Retracement Level of $7,026, though with so much uncertainty over what U.S regulators may uncover vis-à-vis price manipulation, a topic doing its rounds of late, a more sustained rally will likely continue to come undone over the near-term.

Failure to break through the day’s first major resistance level at $6,567.34 will likely bring the day’s first major support level at $6,063.43 into play and, while the bulls make have managed to stop the rot, sub-$6,000 levels remains in play.

Elsewhere in the cryptomarket, Cardano’s ADA was leading the way at the time of writing, up 7.06%, while DASH, Stellar’s Lumen, NEO and Ripple’s XRP enjoyed more than 4% gains through the early part of the day.

The news wires will need to be watched closely through the day, with the downside protected, cryptomarket volatility capable of delivering some sizeable losses to the brave that may have re-entered the market this week.

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