Bitcoin – The Bulls Lay at the Mercy of EU Finance Ministers

Bitcoin’s on the move in the early hours, with today’s EU Finance Ministers meeting expected to be the key driver for the markets later in the day.
Bob Mason

Bitcoin gained 0.65% on Wednesday, reversing Tuesday’s 0.36% fall, to end the day at $6,333.4, the moves through the first half of the week seeing Bitcoin recover some of the previous week’s losses.

A relatively choppy morning saw Bitcoin pullback from a start of a day morning high $6,285 to late morning intraday low $6,202.8 before finding support, the moves through the early part of the day leaving the major support and resistance levels untested.

Steadying through the late morning, Bitcoin retraced the morning losses, moving through to a late afternoon intraday high $6,355 that came up short of the day’s first major support level at $6,404.53.

Bucking recent trends late in the day, Bitcoin managed to hold on to $6,300 levels through the remainder of the day, with the news wires delivering very little to cause investors to jump ahead of today’s EU Finance Ministers meeting, where cryptocurrencies are to be high on the list of topics to be discussed.

Following the afternoon recovery across the broader market, Bitcoin’s dominance eased back to 56% levels after breaking through to 58% as a result Wednesday morning’s sell-off, with Bitcoin’s dominance expected to ease further should the broader market be able to continue Wednesday’s afternoon recovery through today.

For the Bitcoin bulls, Bitcoin’s moves within some relatively tight ranges in recent days will be of some concern, the broader market sell-off suggesting that Bitcoin has a lot left to lose should we see sentiment continue to deteriorate and the news wires get flooded with regulatory updates from the SEC, the G20 and even from EU Finance Ministers.

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At the time of writing, Bitcoin was up 1.08% to $6,401, with Bitcoin seeing a start of a day bounce from a morning low $6,333.4 to a morning high $6,443.6 before easing back, the early moves seeing Bitcoin break through the day’s first major resistance level at $6,391.33 to come up against the second major resistance level at $6,449.27.

For the day ahead, a move back through the morning high would support breakout from the second major resistance level at $6,449.27 to bring $6,500 levels into play, though for Bitcoin and the broader market to hold on to the early gains, news from the EU Finance Ministers’ meeting later today will have to be particularly crypto friendly. It’s an unlikely scenario when considering government sentiment towards the cryptos and the recent case of market manipulation ahead of Goldman’s announcement of hitting pause on launching a crypto desk.

Failure to breakout from the day’s first major resistance level could see Bitcoin hit reverse later in the day, with sub-$6,300 levels and the day’s first major support level at $6,239.13 in play should the markets hit reverse, Bitcoin needing to hold on to $6,300 levels through the early afternoon to avoid a more material reversal.

The Bitcoin bulls will be in the hands of the EU Finance ministers, with any negative chatter likely to see the talk of Bitcoin at sub-$5,000 levels resume as the markets also wait on for the G20 and the SEC on rules and regulations and the ongoing review of 9 Bitcoin ETF Applications that had been refused last month.

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