Bitcoin – Stuck in a Rut Again, $6,700 Needed to Get Things Going

Bitcoin recovers from an early loss, but continues to face stern resistance on any run at $6,700 levels, the bears digging in.
Bob Mason

Bitcoin fell by 0.34% on Monday, reversing Sunday’s 0.37% gain to end the day at $6,599.5, the day’s loss a 3rd in 4-days.

It was a choppier day than normal for Bitcoin at the start of the 4th quarter, with Bitcoin seeing an early move to an intraday high $6,660 hit reverse through the morning, the day’s high coming into range of the first major resistance level at $6,679.93.

Sliding back through the morning, Bitcoin fell through the first major support level at $6,546.73 to an early afternoon intraday low $6,500, calling on sub-$6,500 support to avoid a more material sell-off.

An afternoon recovery saw Bitcoin move back through to a late afternoon high $6,629.9 before pulling back to sub-$6,600 levels by the day’s end, in what was a 3rd consecutive day of Bitcoin failing to break through to $6,700 levels to test selling pressure at the 23.6% FIB Retracement Level of $6,757.

The crypto news wires were on the quieter side through the day, providing Bitcoin and the broader market with little direction, as investors wait on for the G20’s unified rules and regulations and updates from the SEC on the recent applications for Bitcoin ETFs.

Elsewhere in the markets, NEM’s XEM was on the move at the start of the quarter, bucking the trend across the broader market with a 7.13% gain, the upside coming from updates from the NEM network on the team’s progress in forming alliances with organizations to further progress the NEM project, the Monday rally another example of where investors respond to project transparency and product differentiation.

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At the time of writing, Bitcoin was up by just 0.11% to $6,608.9, with Bitcoin recovering from a start of a day fall to a morning low $6,582.8, to hit an early morning high $6,644.7 before easing back, the morning moves leaving the day’s major support and resistance levels untested.

For the day ahead, a move back through the morning high $6,644.7 would bring the first major resistance level at $6,673 and $6,700 levels into play, while we would expect Bitcoin to fall short of the second major resistance level at $6,746.5 and the 23.6% FIB Retracement Level of $6,757 on the day, barring particularly positive news hitting the crypto news wires.

Failure to make a move through the morning high $6,644.7 could see Bitcoin hit reverse later in the day, a pullback through $6,586.5 likely to lead to a more material sell-off that would bring the day’s first major support level at $6,513 into play before any recovery. Bitcoin will likely avoid sub-$6,500 levels for a 3rd consecutive day, barring negative news hitting the wires.

Elsewhere, Bitcoin Cash and Litecoin were leading the way amongst the majors, the pair up 2.87% and 1.43% respectively.

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