Bitcoin – Volatility is back and so are the BearsBitcoin back down to test sub-$6,500 support levels early in the day is a case of deja-vu, with the broader market in spiral mode.
Bitcoin gained another 0.81% on Wednesday, following on from a 0.81% rise on Tuesday, to end the day at $6,572.9 in what was a trend bucking day, the broader market seeing red through the day.
The gains came on an announcement by the SEC that no further comments would be taken in, with the SEC now in the process of deciding whether the time is right to approve one, some or all of the Bitcoin ETF applications that were submitted earlier in the year.
While Bitcoin managed to hold onto gains made at the start of the day, Bitcoin breaking through the first major resistance level at $6,550.8 and second major resistance level at $6,579.4 to hit a morning high $6,615, failing to hold onto $6,600 levels was perhaps an omen for Bitcoin and the broader market, with volatility and higher volumes creeping back into the cryptomarket.
A possible realization that the SEC is unlikely to deliver its decisions on the 9 ETF applications any time soon may have dawned on the market and ultimately Bitcoin and with it, a slide in the likes of Ripple’s XRP and Stellar’s Lumen pinned back hopes of any shift in market sentiment towards product differentiation and adoption of platforms to drive coin values through supply and demand in the near-term.
At the time of writing, Bitcoin was down 0.65% to $6,530, with moves through the early morning seeing Bitcoin slide from a start of a day morning high $6,585 to an early morning low $6,496.7, the reversal seeing Bitcoin fall through the first major support level at $6,517.6 to sub-$6,500 levels for the first time since last Saturday.
While the volatility and the return of the Bitcoin bears will be welcomed by some, the latest reversal comes off the back of some sizeable gains elsewhere in the broader market that may ultimately leave the majors flat and back at October levels should the news wires fail to break the monotony and, with the SEC likely to take its time and governments and regulators in no major hurry to roll out unified rules and regulations, we could see the bears squeeze the volatility back out of the broader market in the coming days, once the current reversal washes through.
For the day ahead, a move back through $6,566 would support a 2nd half of a day rebound to bring $6,600 levels into play, though Bitcoin may well need the support of the broader market to fight off the bears through the day, a failure to break free from $6,500 levels giving the bears a way back into the markets mid-week.
Failure to move back through to $6,566 could see Bitcoin ease back further later in the day, with a pullback through the morning low $6,496.7 likely to see Bitcoin test the day’s second major support level at $6,462.3 before any recovery.
One step forward, two steps back seems to be the cryptomarket story in recent weeks, any attempts at a breakout being thwarted as uncertainty over what lies ahead continues to shroud the cryptomarket.