Bitcoin Struggles Ahead of the G20’s Planned Rules and Regs

It’s a slow start to the day for Bitcoin, following Sunday’s late in the day pullback, leaving Bitcoin struggling for direction early in the day. Bitcoin will need to break through to $7,000 levels soon to avoid another major sell-off.
Bob Mason

Bitcoin fell by 0.85% on Sunday, partially reversing Saturday’s 2.69% gain, to end the week up 5.59% to $6,704.1.

An intraday high $6,801.9 in the first hour saw Bitcoin fall short of the day’s first major resistance level at $6,909.07, while breaking through the 23.6% FIB Retracement Level of $6,757 for a 2nd consecutive day and for the 3rd time in the week, before pulling back to $6,700 levels and a particularly range bound day that saw Bitcoin hold on to $6,700 levels until a late in the day sell-off.

In line with the broader market, Bitcoin slipped to a late in the day intraday low $6,666.1, before recovering to $6,700 levels by the close, the day’s low steering clear of the first major support level at $6,580.67.

Following the positive news out of South Korea on Saturday that supported a late rally, the late in the day reversal was likely driven by investors locking in profits from the week, weekend rallies having rarely carried into a new week through this year.

Concerns over what rules and regulations will be rolled out by the G20 continue to linger, in spite of the South Korean government looking to take a looser stance on cryptocurrencies and initial coin offerings and, with the end of July deadline looming, investors don’t have long to wait, which will likely see volatility build in the coming weeks, governments and regulators unlikely to be providing any forward guidance ahead of the rollout.

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At the time of writing, Bitcoin was down just 0.01% to $6,706.3, with Bitcoin starting off the day with relatively range bound moves, a morning high $6,723.7 struck at the start of the day falling short of the first major resistance level at $6,781.97 and a morning low $6,686 holding above the first major support level at $6,646.17.

Selling pressure at the 23.6% FIB Retracement Level of $6,757 pinned Bitcoin back through the early part of the day, Bitcoin struggling to break out from the 23.6% FIB Retracement Level of $6,757 to move through to $7,000 levels and begin forming a near-term bullish trend.

For the day ahead, a move back through the morning high $6,723.7 would support a run at the day’s first major resistance level at $6,781.97 to bring $6,800 levels into play for a 3rd consecutive day, though the news wires will need to be on the friendlier side for Bitcoin to hold on to any moves through to $6,800 levels.

Failure to take a run at the day’s first major resistance level at $6,781.97 could see Bitcoin pullback to test the day’s first major support level at $6,646.17 before recovering, though we would expect Bitcoin to hold on to $6,700 levels through the day, with direction through the day likely to be on the upside for Bitcoin.

Elsewhere, Stellar’s Lumen led the way across the broader market, gaining 0.96% at the time of writing, while Cardano’s ADA and NEO led the way down, with falls of 1.5% and 1.47% respectively, the divergence across the majors likely to be contributing to Bitcoin’s poor start to the day.

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