Bitcoin – The Reversal Complete, Almost…

Bitcoin fell 2.96% on Thursday, following on from the 2.46% slide on Wednesday, to end the day at $7,933.6.

A range bound morning and early afternoon saw Bitcoin move from a start of the day morning low $8,175.6 to a late morning intraday high $8,323.1 before easing back to $8,200 levels through the afternoon, the day’s first major support level at $8,008.03 and first major resistance level at $8,423.13 left untested.

With range bound moves in the wake of a strong rally having weighed on Bitcoin and the broader markets in recent weeks, the lack of momentum through the afternoon saw investors lock in profits in response to the news wires, leading to a late in the day Bitcoin slide through the first major support level a $8,008.03 to an intraday low $7,869.6, coming within reach of the second major support level at $7,832.97 before recovering to $7,900 levels.

For the Bitcoin bulls, the pullback to sub-$8,000 levels spells trouble for Bitcoin and the broader market, a hold above $8,200 needed through the day to support a near-term run at $9,000 levels. There was some good news however, with Bitcoin continuing to hold well above the 23.6% FIB Retracement Level of $7,857, leaving the near-term bullish trend intact, albeit shakily.

Bitcoin’s response to the break through to $8,000 levels and direction through the 2^nd half of the week is certainly key to direction through the remainder of the summer, with the continued reversals at new swing hi levels leaving $10,000 levels and more off the table for now.

Following hopes of the SEC approving Bitcoin ETFs earlier in the week, the review now delayed until September, the SEC rejected a request for a Bitcoin ETF approval on Thursday, which was considered to be a negative and likely contributed to the pullback, though the SEC also pointed out that the rejection was not directed at Bitcoin, but the proposal itself, which should ease some of the pain for Bitcoin, the broader market and concerns over the plan to roll out of Bitcoin ETFs at the end of the summer.

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At the time of writing, Bitcoin was down just 0.05% to $7,935.1, with Thursday’s news driven late sell-off continuing into the early hours of this morning.

A slide to a morning low $7,848 saw Bitcoin call on support at the 23.6% FIB Retracement Level of $7,857 before recovering to $7,900 levels, the morning low steering clear of the first major support level at $7,761.1. A start of the day $7,964.6 high fell well short of the day’s first major resistance level at $8,214.6.

For the day ahead, a move through $8,042 would support a run back through to $8,100 levels, with a green crypto board in the early afternoon supportive of a run at the first major resistance level at $8,214.6, though we will expect Bitcoin to fall short of Thursday’s $8,323.1 high.

Failure to break out from $8,042 could see Bitcoin pullback to sub-$8,000 levels, with the day’s first major support level at $7,761 in play should Bitcoin fail to find support at the 23.6% FIB Retracement Level of $7,857 that has yet to fail the Bitcoin bulls since the near-term bullish trend formation.

The daily highs have been on a downward trend over the last 3-days and the latest news could see today’s moves make it a 4^th.

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