Bitcoin Tests Support Levels Early as the Bears Tighten their Grip

Bitcoin had a relatively uneventful day on Thursday, falling 0.37% to end the day at $6,774.2, with Bitcoin settling down from Wednesday’s 8.59% slide.

Wednesday’s late in the day sell-off continued into the early hours of Thursday, leading Bitcoin to an intraday low $6,578.95, coming within touching distance of the day’s first major support level of $6,515.91, before a market wide recovery through the middle part of the day saw Bitcoin hit an intraday high $6,928.7, coming up short of the day’s key resistance levels and the all-important $7,000.

Following Wednesday’s tumble, the short-term bullish trend from Sunday’s swing lo $6,427.16 was reversed to leave the longer-term bearish trend formed back at 21^st March’s swing $9,188.1 intact through the day.

There’s a long way to go for Bitcoin to reverse the longer-term bearish trend, with the woes from the 1^st quarter continuing to linger at the start of the 2^nd, as investors wait on to hear from governments and regulators of key jurisdictions on what’s to come from a regulatory perspective.

Volatility has certainly picked up and, with investors on the cautious side, the continued pullback in key rallies suggest that Bitcoin and the rest of the cryptos aren’t going anywhere any time soon, a major sell-off now needed to draw in investors sitting on the side lines during the 1^st quarter sell-off, as market specialists talk of more doom and gloom to come.

Until Bitcoin makes a move back through to the 62% FIB Retracement Level of $8,133.4, the bearish trend will remain intact, leaving investors quick to lock in profits intraday.

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At the time of writing, Bitcoin was down 3.16% to $6,558, with hopes of a 2^nd rally in the week vanishing in the latter part of the morning. Bitcoin’s morning $6,850 high fell short of the day’s first major resistance level of $6,942.28 and 23.6% FIB Retracement Level of $7,078.7.

A shift in sentiment across the market pulled Bitcoin down to an early morning low $6,526, falling through the day’s first major support level of $6,592.53, with the day’s 2^nd support level of $6,410.87 at risk of being tested before the end of the morning.

We will expect Bitcoin to avoid a pullback to the year’s sub-$6,000 lows today, assuming there is no major negative news to add fuel to the bearish trend that has persisted since 21^st March.

A move back though to $6,700 levels would support a run at the day’s $6,850 high, to bring the day’s first major resistance level into play though, barring a material shift in sentiment in the afternoon, a move back into $7,000 will likely be elusive ahead of the weekend.

With the Cboe Bitcoin Futures April contract down $250 to $6,520, the path of least resistance continues to be southwards, though we can expect investors to be drawn in at current levels going into the weekend.

Elsewhere, Ripple’s XRP was the worst of the majors, down 4.91%, with Cardano’s ADA down 4.85% in what is a sea of red in the early part of the day.

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