Bitcoin Struggles as Investor Focus Returns to Regulatory Risk

Bitcoin slid 3.05% on Monday, following on from Sunday’s 1.98% fall, to end the day at $9,363.8, Bitcoin distancing itself further from the ever elusive $10,000 handle at the start of the week.

The markets turned negative on Sunday and continued to slide through the first half of Monday, with regulatory risk driving investors to lock in profits coming off the back of a bullish trend formed back at 6^th April’s swing lo $6,500.2, news of fresh regs out of Japan weighing through the early hours.

It was a different story through the afternoon, with news of South Korea looking to take a more supportive role in the cryptomarkets providing support, with investor jitters over an expected SEC decision on how to classify Ether also abating, the talked about the SEC session turning out to be fake news.

For the Bitcoin bulls, a hold above the 23.6% FIB Retracement Level of $9,173.3 with a day low $9,182.7 was the plus, with Bitcoin managing to find support at the day’s second major support level at $9,184.7 to move back towards the first major support level at $9,425.4 by the day’s end.

In spite of the day’s pullback, the bullish trend remains intact and leaves $10,000 on the table this week, with support expected to continue from the positive news from the South Korean regulators.

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At the time of writing, Bitcoin was up just 0.04% to $9,373.3, with Bitcoin seeing an early bounce through to a morning high $9,471 reverse as investor sentiment remains cautious this morning.

While Bitcoin has managed to steer clear of the 23.6% FIB Retracement Level of $9,173.3, it’s not out of the woods yet, with the latest shift in investor sentiment continuing to pin Bitcoin back, raising the prospects of further declines before another run at $10,000 levels.

With major support and resistance levels untested early on, Bitcoin will need to hold on to $9,300 levels through the morning and move back through to $9,400 levels to support a bullish run through the afternoon.

Investor radars are back on regulators following a series of announcements out of Japan and South Korea and that’s never been good for the cryptomarket, particularly with the SEC likely to take a harsher stance than its Asian counterparts.

For the day ahead, failure to move back through to $9,400 levels could see Bitcoin call on support at the 23.6% FIB Retracement Level of $9,173.3, with any further pullback through to the first major support level at $9,138.37 likely to lead to a more bearish move through the day, bringing sub-$9,000 support levels into play.

Investors have been quick to jump ship on the downside, with sub-$9,000 levels likely to be considered an entry point should the news wires behave.

Elsewhere, Ethereum was holding on to early gains, up 0.34% to $754.99, recovering from Monday’s lows, though the very fact that fake news can lead to such a sell-off is a negative in itself, the cryptomarkets seeming to be still ever susceptible to price manipulation.

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