Bitcoin Support Levels May Need to Be Tested to Fuel a Run at $10,000

Bitcoin gained 4.71% on Thursday, partially reversing Wednesday’s 8.28% slide, to end the day at $9,285.1, only the 2^nd close at $9,000 levels since mid-March.

It was a mixed bag for Bitcoin through the day, with an intraday low $8,652.2 being hit within the first hour of the day, as a late Wednesday sell-off spilled into the early hours of Thursday.

The morning’s low held above the day’s first major support level of $8,486.07, while Bitcoin slid through the 23.6% FIB Retracement Level of $8,996 to call on support at the 38.2% FIB Retracement Level of $8,519 that led to Bitcoin rallying in the late afternoon to hit a day high $9,308, breaking clear of the 23.6% FIB Retracement Level of $8,996 and, more importantly, back to $9,000 levels.

Thursday’s high fell short of the day’s first major resistance level of $9,488.37, though the late afternoon rally and move clear of the FIB Retracement Levels will continue to support the bullish trend formed at 6^th April’s swing lo $6,500.2.

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At the time of writing, Bitcoin was down 0.81% to $9,149.9, with the broader market in the red through the start of the day, Bitcoin partially reversing gains made late on Thursday.

It’s been a relatively range bound start to the day, with Bitcoin’s intraday low $9,132 and high $9,320 leaving the day’s major support and resistance levels untested early on.

For the Bitcoin bulls, the continued hold at $9,000 levels and distance from the 23.6% FIB Retracement Level of $8,996 will continue to support the extended bullish trend formed in the first week of the month.

While the cryptos are in the red through the early part of the day, a move back through to $9,350 would support a run at the day’s first major resistance level of $9,511.33 and Wednesday’s swing hi $9,767.4 to bring $10,000 levels back into play going into the weekend.

Failure for Bitcoin to move back through Thursday’s high to test the day’s first major resistance level could see Bitcoin under pressure later in the day, a pullback through this morning’s $9,132 low bringing the day’s major support levels into play.

Buying appetite at the keys support levels would be dependent upon sentiment across the broader market, with Bitcoin having managed to hold off more material declines early on.

While we have seen a shift in sentiment towards Bitcoin Cash, Bitcoin has continued to have an influence on direction for the broader market, with any upward move through the late morning likely to be reflected elsewhere, Stellar’s Lumen the only major in positive territory in the early part of the day, up 7.97% to $0.416.

Looking across at the Cboe Bitcoin Futures, the May contract was up $130 to $9,220, the gains being driven by Bitcoin’s hold at $9,000 levels rather than an early move by the futures market that would support a Bitcoin rally this afternoon.

The weekend is upon us and, while last week failed to deliver a weekend rally, the moves through the previous week having been sizeable, the choppiness of the week could inspire the bulls to take a run at $10,000 should sentiment not shift later today, the milestone key to continue fuelling the Bitcoin recovery.

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