Bitcoin Struggles as Focus Shifts to Congress

Bitcoin has struggled for direction this morning, following a range bound Tuesday, with the markets now looking ahead to today’s session in Congress and whether there is any cause for concern from a near-term regulatory stand point.
Bob Mason
BTC/USD daily chart, March 02, 2018

Bitcoin managed to eke out a 0.93% gain on Tuesday, partially reversing Monday’s 4.7% loss, to end the day at $9,199.99.

Relative to Monday’s volatility, the day was somewhat more subdued, with Bitcoin more range bound through the day, with a lack of direction providing investors with little incentive to jump in at sub-$10,000 levels.

Bitcoin managed to hit an intraday high $9,482.79 in the early part of the day, falling short of the day’s first major resistance level of $9,740.8, with investors quick to sell any upward moves to lock in profits intraday.

The selloff, saw Bitcoin pull back to sub-$9,000 levels through the middle of the day, with Bitcoin falling to an intraday low $8,830 before buyers jumped in with appetite driven by value rather than any major news event to spur a Bitcoin rally.

Bitcoin managed to avoid major support levels through the day, while also falling short of resistance levels, with the next area of focus for investors being today’s session in Congress on cryptocurrencies and initial coin offerings ahead of the G20 Summit on 20th March.

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At the time of writing, Bitcoin was down 0.01% at $9,151.31, in what has been another relatively range bound day, with a morning intraday low $9,080.49 hit in the early hours, coming off a start of the day $9,356.14 intraday high From which Bitcoin pulled back from.

While Bitcoin’s first major support level sits at $8,859.06, we will expect support at the $9,000 psychological level to avert any immediate threats of sub-$9,000 levels, though support may soften as the day progresses, in the event that Bitcoin continues to hover at current levels.

We’ve seen Bitcoin shift into a more bearish trend this week, following Monday’s swing hi $9,892 that led to a reversal and a swing lo $8,742.07 on the very same day, which has contributed to the range bound moves through the middle part of the week.

For the day ahead, a move back through the day’s 38.2% FIB Retracement Level of $9,181.34 would support some upward momentum through the middle part of the day, though we may see investors looking for dips to jump in, when considering the uncertainty that lingers ahead of today’s session in Congress.

A failure to move through $9,181.34 and break back through $9,200 levels could see Bitcoin fail to test resistance levels once again and test sub-$9,000 support levels. Much will ultimately depend on the news wires and how Congress views the cryptocurrency and ICO markets however. Any talk of the need for substantial oversight in the interest of protecting investors and we can expect support levels to be brushed aside.

Looking across at the Cboe Bitcoin Futures March contract, due for settlement today, it’s up $65 to $9,140.00, which will be of little support, with only the June contract giving Bitcoin some wriggle room, up $100 at $9,250 at the time of writing.

Elsewhere, it’s a mixed bag, with only Ripple’s XRP, Ethereum, Cardano and Nem’s XEM in positive territory, NEM’s XEM leading the way with yet another bullish start to the day, up 11.17% this morning.

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