Bitcoin Stuck in a Rut, with Bitcoin Cash Stealing the Show

Bitcoin slipped by just 0.31% on Saturday, partially reversing Friday’s 2.34% gain, to end the day at $8,213.7.

A range bound start to the day that saw Bitcoin’s intraday low $8,140.2 hold well above the day’s first major support level at $8,019.87, supported a run through the day’s first major resistance level at $8,468 to an intraday high $8,468, falling just shy of the day’s second major support level at $8,500.73 before pulling back to $8,200 levels through the afternoon. Selling pressure at the 23.6% FIB Retracement Level of $8,415 did the damage, Bitcoin’s bearish trend leaving investors on the defensive.

The good news for the Bitcoin bulls was Bitcoin’s move to test the day’s first major resistance level, Bitcoin having last tested key resistance levels last Monday. Failing to hold above the day’s first major resistance level and 23.6% FIB Retracement Level continues to support the near-term bearish trend formed at 5^th May’s $9,999 swing hi however, with Bitcoin down 5.4% Monday through Saturday.

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At the time of writing, Bitcoin was up 0.28% to $8,253.8 in what’s been a relatively range bound start to the day, Bitcoin’s morning low $8,171.5 and morning high $8,286.1 steering clear of the day’s major support and resistance levels.

For the day ahead, Bitcoin will need to move back through to $8,300 levels in the early part of the day to support a run at the day’s first major resistance level of $8,407.73 and bring the 23.6% FIB Retracement Level of $8,415 back into play.

Any moves through to $8,400 may well be short lived however, with investors quick to lock in profits in the interest of avoiding a sell-off, with the new week likely to bring new news for the cryptomarket to grapple with.

Failure to move through to $8,300 levels could see Bitcoin pullback to sub-$8,200 levels and test the day’s first major support level at $8,078.93, with the current bearish trend continuing to support a more material pullback to sub-$7,500 levels before any major recovery.

Rallies are likely to remain capped near-term, with regulatory risk continuing to pin back any hopes of a move back to test $10,000 resistance levels that had come off an April low $6,500.2 low.

For the Bitcoin bulls, the first target to reverse the current bearish trend will be the 38.2% FIB Retracement Level of $8,717 that would support a run at $9,000 levels, though some particularly news friendly updates will be needed for investors to re-enter the market, regulators in key jurisdictions likely to be close to finalizing regulatory blue prints for the cryptomarket.

Elsewhere in the market, Bitcoin Cash led the way at the time of writing, up 4.05%, with DASH, NEO and NEM’s XEM also making solid gains, while Litecoin lagged the majors, bucking the trend to sit in the red with minor losses early on.

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