Bitcoin Turning Bearish, with the Bears Eyeing sub-$7,000

Bitcoin fell by 1.05% on Thursday, following on from Wednesday’s 1.7% decline, to end the day at 7,527, the moves through the day marking a 5^th consecutive day in the red.

A choppy start to the day saw Bitcoin move through to an early morning intraday high $7,713 before pulling back to $7,600 levels, the day’s high falling short of the day’s first major resistance level at $7,761.73 and more importantly, the 23.6% FIB Retracement Level of $7,857.

Following a relatively range bound morning, Bitcoin finding support while the broader market saw red, a late morning reversal saw Bitcoin fall to a mid-afternoon intraday low $7,450, calling on support at the 38.2% FIB Retracement Level of $7,456 before recovering to $7,500 levels late in the day, the day’s low steering clear of the first major support level at $7,445.83.

Bitcoin’s continued support at the 38.2% FIB Retracement Level of $7,456 kept the near-term bullish trend intact through the week, though pressure has continued to build, with Bitcoin’s downward trend on the intraday highs reflected with a 2^nd consecutive day of falling short of $8,000 levels.

Market sentiment towards an expected shift in the regulatory landscape continued to be the key driver on Thursday, with the SEC’s delay in a decision on Bitcoin ETFs to September and the G20’s delay in rolling out unified rule and regulations for the broader cryptomarket doing few favours in the week.

We can expect key jurisdictions to revisit existing rules and regulations and introduce interim measures as a stop gap to protect investor interests, with the cryptomarket unlikely to be a key priority for the G20 when considering the ongoing U.S – China trade war and other geo-political headwinds influencing the global economic outlook and the global financial markets.

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At the time of writing, Bitcoin was down 2.64% to $7,336.4, with a start of the day slide doing most of the damage, Bitcoin falling through the first major support level at $7,413.67 to an early morning low $7,315.9.

For the day ahead, a move back through a start of the day $7,533.3 high would support a run at $7,600 levels to bring the day’s first major resistance level at $7,676.67 into play, though of greater importance will be a move back through the 38.2% FIB Retracement Level of $7,456, the morning slide seeing Bitcoin begin to reverse the near-term bullish trend to resume the extended bearish trend formed back in early May.

Failure to recover through the 38.2% FIB Retracement Level to $7,500 levels will likely leave Bitcoin back at $7,300 levels, with the day’s second major support level at $7,300.33 in play should sentiment not shift through the middle part of the day, sub-$7,000 levels on the cards should Bitcoin fail to break back through the 38.2% FIB Retracement Level in the coming days.

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