Bitcoin – The Bulls have$7,000 in Sight, the Bears have other IdeasBitcoin held on to Monday’s gains through the early part of this morning, though with last week’s gains and Monday’s upward moves, Investors may be looking to lock in profits that could, not only weigh on Bitcoin, but the broader market.
Bitcoin gained 4.25% on Monday, following Sunday’s 0.66% fall, to end the day at $6,619.
A relatively range bound morning saw Bitcoin ease back to an intraday low $6,275 before an early afternoon rally kicked in, Bitcoin managing to steer clear of the day’s first major support level at $6,259.77 through the morning.
The afternoon rally saw Bitcoin break through the first major resistance level at $6,439.67 and second major resistance level at $6,529.73 to an intraday high $6,681.2 before easing back at the day’s end, holding above the 2nd major resistance level supporting the formation of a near-term bullish trend formed at 24th June’s swing lo $5,755.
In spite of the recent gains, the extended bearish trend formed at 5th May’s swing hi $9,999 remains intact, with Bitcoin needing to break out from the 23.6% FIB Retracement Level of $6,757 to $7,000 levels to begin forming a bearish trend reversal.
There are plenty of reasons for investors to remain cautious following the gains through the early part of the week, the introduction of regulations across the major crypto jurisdictions still considered to be the key driver over the summer.
Following the losses through June, the bounce through the early July and shift away from $5,000 levels will have restored some confidence in Bitcoin and the broader market near-term however, the crypto majors continuing to defy those calling the asset class a bubble.
At the time of writing, Bitcoin was up 0.39% to $6,643.3, in what’s been another range bound start to the day, the general upward momentum since late June’s swing lo supporting gains off the back of range bound moves in place of the reversals seen through June.
Bitcoin pulled back to a morning low $6,601 at the start of the day, holding well above the first major support level at $6,368.93, before recovering to $6,600 levels, a morning high $6,675.2 falling short of the day’s first major resistance level at $6,775.13 and more importantly, the 23.6% FIB Retracement Level of $6,757.
For the day ahead, a move back through the morning high $6,675.2 would support a run at the 23.6% FIB Retracement Level of $6,757 and second major resistance level at $6,775.13 to continue supporting the formation of a near-term bullish trend, with the bulls now eying $7,000 levels.
Failure to move through the morning high to take a run at the 23.6% FIB Retracement Level of $6,757 could see Bitcoin go into reverse later in the day to bring the first major support level at $6,368.93 into play, though we would expect Bitcoin to steer clear of the day’s major support levels barring negative news hitting the wires later in the day.
Across the broader market, the majors were all in positive territory through the morning, consolidating on Monday’s gains, with NEM’s XEM leading the way, up 5.08% at the time of writing, NEO a distant second, up 3.92%.
The bulls have taken hold of the reins and it could be a big week for the cryptomarket if the momentum can continue through to the latter part of the week, though this wouldn’t be the first time that Bitcoin and the majors have enjoyed to consecutive days’ of gains.