The Bitcoin Slide Resumes as the Cryptos Tailspin

Bitcoin had a better day than most on Wednesday, gaining 2.03% to end the day at $7,949.62, partially recovering Tuesday’s 4.41% loss, whilst barely making a dent in the 4 consecutive days of decline through to Tuesday.

The middle part of the day was kind to the cryptos on Wednesday and Bitcoin certainly provided a much need incentive for investors to move back into the cryptomarkets, albeit sheepishly, with Bitcoin hitting an intraday high $8104.98, to test the first major resistance level of $8,130.06. More importantly, a move through the 23.6% FIB Retracement Level of $8,083.36 avoided an immediate pullback, while investors were quick to lock in gains at the day’s high.

A slide through to an intraday low $7,723.03 in the early afternoon managed to avoid testing the day’s first major support level of $7,600, though the disappointing would have been Bitcoin’s inability to close out the day at $8,000 levels for a 2^nd consecutive day. The good news was Bitcoin’s move through to $8,000 levels however, which should support a consolidation at current levels.

The threat from both governments and regulators continue to pin back highs on a daily basis and for Bitcoin, despite Wednesday’s gain, the bearish trend formed at a swing hi $9,188.1 on 21^st March remaining intact.

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For the Bitcoin bulls looking for the bearish trend to go into reverse, following Wednesday’s gain, there would have been plenty of disappointment in the early hours of this morning, with Bitcoin sliding to an intraday low $7,527, falling through the day’s first major resistance level of $7,746.77 and 2^nd support level of $7,543.93 before support kicked in.

At the time of writing, Bitcoin was down 4% to $7,614.9, with an early move to a morning high $7,968 falling well short of the day’s first major resistance level of $8,128.72 and FIB Retracement Level of $8,068.79.

Breaking back through to $8,000 levels will be key for Bitcoin and the broader market, with the more bullish investors likely to consider current levels as a good buy.

For the day ahead, a move through to the morning’s high would signal the start of a possible reversal to the recent bear trend that has persisted since 21^st March’s swing hi $9,188.1, though when considering the fact that Bitcoin failed to close out at $8,000 levels on Wednesday, coupled with this morning’s slide, key resistance levels may well thwart any attempts at a rebound.

Looking across at the Cboe Bitcoin Futures, things were not much better, with the April contract sliding $310 to $7,580, tracking Bitcoin through the morning. We’re not expecting any divergence in the futures market to support Bitcoin any time soon however, leaving Bitcoin in the hands of the broader market sentiment.

Elsewhere, it was a sea of red. Ethereum continued its slide, down 6.13% to $418.15, with Stellar’s Lumen tumbling $6.7% to $0.2047 and Cardano’s ADA down 5.32% to $0.1496.

Some of these cryptos are getting perilously close to a zero value, the intraday moves beginning to resemble those of penny stocks.

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