Bitcoin – Struggling to Hit $7,000 as the Cryptos Give up more GroundA morning pullback has seen Bitcoin struggle to move back through to $7,000 levels, which could spell trouble later in the day.
Bitcoin fell by 0.76% on Thursday, following Wednesday’s 0.64% drop, to end the day at $6,985.5.
Negative regulatory chatter weighed through the morning, with Wednesday’s news of the planned discussion on cryptocurrencies and lack of regulatory oversight at next month’s EU Finance meetings bringing the start of a near-term bearish trend to an end.
Bitcoin slid from a start of a day intraday high $7,060 to a late afternoon intraday low $6,802.1, the extended reversal seeing Bitcoin slide through the day’s first major support level at $6,925.93 and second major support level at $6,817.57 before finding support at $6,800.
A broad based market recovery late in the day saw Bitcoin break back through the day’s major support levels, while ending the day at sub-7,000 levels for the first time since the start of the week.
The moves mid-week were a reminder for investors of just how sensitive the broader market is to the threat of regulatory change, with the inclusion of cryptocurrencies into next month’s EU gathering a discussion rather than a full blow review and delivery of new rules and regulations.
Whether EU finance ministers decide to force the hands of regulators to deliver EU-centric rules and regs, rather than wait on for the G20 unified regulations remains to be seen, but if the timing of the G20 is anything to go by, it’s going to take some time for a full review, roll out and enforcement.
For Bitcoin and the broader market, the roll out of rules and regulations for the cryptomarket remains key to a bottoming out, which would support the respective cryptocurrencies to begin finding direction on merit rather than move broadly aligned.
At the time of writing, Bitcoin was down 0.09% to $6,979.5, with moves through the early morning seeing Bitcoin pullback to a morning low $6,927.1 before recovering, a morning high $6,986.1 coming at the start of the day, falling short of the day’s first major resistance level at $7,096.3.
For the day ahead, a move through to $7,000 levels would support a run at the day’s first major resistance level at $7,096.3 to bring $7,100 levels into play, with a recovery from the morning low supporting some upward momentum through the day, though we can expect Bitcoin to face plenty of resistance on any run at $7,100 levels that could limit gains on the day.
Failure to move through $7,000 levels to take a run at the day’s first major resistance level at $7,096.3 could see Bitcoin pullback through the morning low $6,927.1 to bring $6,800 levels and the day’s first major support level at $6,838.4 into play.
For the morning, holding above $6,950 will be key to avoid a more material pullback through the morning, 2 consecutive days of losses leaving Bitcoin in the hands of the bears ahead of the weekend.