Bitcoin Struggles for Direction as the Bears Hold on

The weekend ended on a high note for Bitcoin, with Bitcoin gaining 8.58% on Sunday to reverse Saturday’s 4.8% slide, closing out the weekend at $9,550.05.

It wasn’t all good news however, with Bitcoin ending the week down 16.8% from Monday’s opening $11,479.68, though there would have been some comfort for Bitcoin investors in the fact that Bitcoin managed to move back through to $9,000 levels through the middle part of the day and, more importantly, hold on.

Sunday’s intraday high $9,768.37 broke through the day’s first major resistance level of $9,384, while falling short of the 2^nd resistance level of $9,982 and $10,000 levels.

An intraday low $8,507.34 was hit in the early hours of the day, with Bitcoin managing to avoid support levels through the morning, supporting the rally through the middle part of the day, as sentiment across the cryptomarkets improved and investors enjoyed yet another weekend rally.

There was no negative news through the weekend to cause the Sunday rally to reverse, with the hype over Wednesday’s cryptocurrency and initial coin offering session in Congress abating as the weekend progressed, though sensitivity towards what may lie ahead certainly remains.

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At the time of writing, Bitcoin was up 0.73% to $9,604.46, sitting just shy of an early intraday high $9,695.21, with Bitcoin managing to recover from a $9,355.55 low at the start of the day.

The morning has been relatively range bound, with Bitcoin struggling to make a move through the morning, with major support and resistance levels untested.

For the day ahead, Bitcoin will need to make a move through to $9,700 levels to make a run at today’s first major resistance level of $10,000, which will certainly be a test for investors ahead of Wednesday’s session in Congress.

Bitcoin found plenty of support at the day’s 23.6% FIB Retracement Level of $9,457.24 this morning, which will provide some comfort, with the Cboe Bitcoin Future March contract providing further support at current levels, the March contract up $505 to $9,640 at the time of writing.

A lack of momentum through the middle part of the day will likely see Bitcoin fall back through to the 23.6% FIB Retracement Level of $9,457.24 however, while the day’s first major support level of $8,782.14 will unlikely be tested barring a pullback through to the 38.2% FIB Retracement Level of $9,264.75 that could bring sub-$9,000 levels back into play.

Elsewhere in the market, Ethereum is up 0.52% to $723.53, with NEM’s XEM and Cardano also in positive territory, while Stellar’s Lumen, Ripple’s XRP and Litecoin join Bitcoin Cash in the red, Bitcoin cash the worst performer this morning, down 2.20%.

Bitcoin is holding on and the news wires will likely have a hand in direction through the remainder of the day, with investors looking out for any news from the U.S ahead of Wednesday’s session.

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