Bitcoin Tanks Again and There is Likely to be More to Come

Bitcoin is down again and, while faring better than some of the majors, there may well be more pain to come before the Bitcoin bulls can come out of hiding.
Bob Mason
Bitcoin

Bitcoin gained 2.03% on Saturday, partially reversing Friday’s 12.06% tumble, to end the day at $6,165.

It was a relatively range-bound day for Bitcoin following Friday’s sell-off, with a morning intraday low $6,013 holding well above the day’s first major support level at $5,728.13 before a late in the day intraday high $6,259.

With the day’s high also falling short of the first major resistance level at $6,548.33 and well short of the 23.6% FIB Retracement Level of $6,876, the extended bearish trend formed at 5th May’s swing hi $9,999 remained intact, with the only positive through the day being a hold above $6,000 levels.

The cryptomarket was reminded of what’s to come on the regulatory side, with Japanese regulators stepping up in the wake of recent hacks and over concerns of money laundering and the financing of terrorist activity, with more pain on the horizon before any meaningful recovery can be expected.

Talks of sub-$4,000 levels have started doing the rounds and, when considering the moves through the week, it may come around sooner rather than later.

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At the time of writing, Bitcoin was down 4.78% to $5,858, an early broad based sell-off seeing Bitcoin fall through the first major support level at $6,032.33 and second major support level at $5,899.67 to a morning low and new swing lo $5,800 before a partial recovery, the morning’s $6,187.5 high at the start of the day leaving the first major resistance level untested

There was no materially negative news through the early hours to pull Bitcoin back to sub-$5,000 levels, as Friday’s regulatory news continued to pin back the chances of a recovery through to $7,000 levels to begin a bearish trend reversal.

For the day ahead, a move through $6,000 to $6,145.67 would support a run at the day’s first major resistance level at $6,278.33, though with the broad-based sell-off through the morning, $6,100 levels is some way off, with Bitcoin likely to face plenty of resistance at $6,000.

Failure to move back through to $6,000 levels and the morning’s $6,187.5 high would likely see Bitcoin take another hit later in the day to bring the third major support level at $5,653.67 into play before any recovery, the bears now eyeing sub-$5,000 levels.

Elsewhere in the cryptomarket, EOS saw the heaviest losses through the first half of the day, down $13.9%, with Bitcoin Cash and NEM’s XEM close behind with losses of 10.33% and 9.29% respectively, none of the majors able to buck the trend through as the weekend comes to an end.

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