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Bitcoin Struggles Early, the Bitcoin Bears Looking to Take Control

By:
Bob Mason
Updated: Mar 26, 2018, 07:30 UTC

Bitcoin struggles through the early part of the day, with the cryptobears holding on tight, after a double negative through the weekend.

btc

It was a bad weekend for Bitcoin, with Saturday’s 4.22% slide being followed up by a 5.18% fall on Sunday, to end the weekend at $8,456.41.

The Bitcoin Bulls failed to take control over the weekend, with Bitcoin now having failed to close out the day at $9,000 levels for 12-consecutive days.

An intraday high $8,860 fell well short of day’s first major resistance level of $8,872.97, with a late in the day run at the 38.2% FIB Retracement Level of $8,617.6 seeing investors pull out, leading to a pull back through the day’s 23.8% FIB Retracement Level of $8,482.9 to a closing $8,456.41.

For the week, Bitcoin was up 3.06% from Monday’s open through to Sunday’s end of day $8,456.41, with the bearish trend formed at Wednesday’s swing hi $9,188.1 still intact, Friday’s rally having reversed through the weekend.

Uncertainly over the regulatory landscape left Bitcoin treading water through the weekend, as investors look ahead to updates from both Japan and South Korean regulators on domestic issues, one of which has been Binance operating without a license in Japan.

Bitcoin hasn’t been able to move back through to $10,000 levels since 7th March and with U.S Regulators looking to include wallet addresses on sanction lists, association alone would certainly have dire consequences, which will give investors yet another thing to worry about, U.S regulators needing to provide significantly more clarity on their intentions.

Even the simple purchase of Bitcoins from a wallet that appears or eventually appears on one of the lists could lead to the buyer being included, even if the Bitcoin buyer is legitimate.

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BTC/USD 26/03/18 Hourly Chart

At the time of writing, Bitcoin was up 0.19% to $8,469.7 in what has been a low key start to the week, Bitcoin’s morning high $8,500 and low $8,370 failing to test major resistance and support levels this morning.

For the day ahead, a move through the day’s 23.6% FIB Retracement Level of $8,482.9 would support a run at the day’s 38.2% FIB Retracement Level of $8,617.6 and first major resistance level of $8,634.73, though we will expect sellers to be ready to lock in profits and $8,600 levels, as concerns over what lies ahead for cryptocurrency investors has seen attempts to reverse the current bearish trend falter.

Failure to break through to $8,600 levels would likely see investors head for the side lines, with the day’s first major support level of $8,323.36 coming into play. Barring any materially negative news however, we won’t expect sub-$8,000 support levels to be tested later in the day.

Looking across at the Cboe Futures, the April Contract was down $145 to $8,460, providing Bitcoin with little support at the start of the week.

Elsewhere, Stellar’s Lumen was on the move, up 1.91%, while NEM’s XEM and Monero were amongst the biggest losers early, down 1.12% and 1.47% respectively.

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About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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