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Bitcoin Troubles Continue as the Bear’s Grip Tightens

By:
Bob Mason
Published: May 22, 2018, 06:14 UTC

It's red again for Bitcoin, the decline coming off the back of Monday's slide, though there could be some support through the middle of the day, while any upside will be limited as the bears remain in control.

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Bitcoin slipped by 1.51% on Monday, partially reversing Sunday’s 3.44% gain, to end the day at $8,394.6.

A positive start to the day that came off the back of the late weekend rally, saw Bitcoin move through to an intraday high $8,644 in the late morning, Bitcoin managing to continue holding above the 23.6% FIB Retracement Level of $8,415.

In spite of the positive moves through the morning, Bitcoin failed to test the day’s first major resistance level at $8,690 and move through to $8,700 levels to test selling pressure at the 38.2% FIB Retracement Level of $8,717.

An afternoon sell-off saw Bitcoin pullback through the 23.6% FIB Retracement Level at $8,415 to an intraday low $8,309.1 before recovering late in the day, with resistance at $8,415 seeing a number of attempts at a break through the 23.6% FIB Retracement Level reverse before the day’s end, Bitcoin unable to hold on to $8,400 levels.

For the Bitcoin bulls, the target remains $8,700 levels and a break through the 38.2% FIB Retracement Level at $8,717 in order to begin reversing the bearish trend, though the Bitcoin bears continue to cap Bitcoin’s highs in support of the near-term bearish trend formed at 5th May’s swing hi $9,999.

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At the time of writing, Bitcoin was down 1.19% to $8,299.9, a start of the day fall seeing Bitcoin hit the day’s first major support level at $8,254.47 with an intraday low $8,253 before support kicked in and led to a move back through to current levels.

The early slide saw Bitcoin lose some distance from the 23.6% FIB Retracement Level of $8,415, giving the Bitcoin bulls an even harder tasks to reverse the current bearish trend.

A start of the day $8,408.3 high, came within reach of the day’s 23.6% FIB Retracement Level of $8,415, adding selling pressure in the early hours, while the morning high fell well short of the day’s first major resistance level at $8,589.37.

For the day ahead, a move back through to $8,350 would support a run at $8,400 levels and the 23.6% FIB Retracement Level of $8,415, though with Bitcoin likely to face plenty of resistance in the $8,400 – $8,415 range, we would expect the day’s first major resistance level at $8,589.37 to be left untested through the day.

It’s been a tough time for the bulls and, while there have been some positive moves in recent days, the bearish trend will likely continue to take its toll on investors looking to buy in on the dips, Bitcoin having yet to touch sub-$7,000 levels in the current bearish trend.

Elsewhere in the markets, it’s a sea of red at the top of the crypto board, with Moreno’s XMR, NEO and Bitcoin Cash leading the way down, with in excess of 3% losses in the early hours of the morning, the bears tightening their grip at the start of the week.

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About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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