Bitcoin – Weekend Rally Part 2 or Take Profit?

Bitcoin gained 2.68% on Saturday, following Friday’s 0.43% gain, to end the day at $7,201.6, its highest close since 3^rd August.

Upward momentum through the early part of the day saw Bitcoin move from a start of a day intraday low $7,011.3 to a morning high $7,119, the early move seeing Bitcoin break through the day’s first major resistance level at $7,116.67 before falling back to sub-$7,100 levels.

Tracking the broader market, Bitcoin rallied through to a late afternoon intraday high $7,269.9, Bitcoin breaking through the day’s second major resistance level at $7,217.53, with resistance on the way through to $7,300 ultimately pinning Bitcoin back from more material gains on the day.

For the Bitcoin bulls, $7,300 and the 38.2% FIB Retracement Level of $7,376 is the target, with a break through the 38.2% FIB Retracement Level being an affirmation of the beginnings of a bearish trend reversal.

The gains through the day came in spite of the news wires being relatively quiet, with Bitcoin’s dominance easing back further through the day to a low 52.11% as some of the crypto majors clawed back some of the heavier losses from the month before.

Bitcoin’s gains were certainly not the most significant on the day, with Bitcoin Cash smashing back through to $600 levels with a 14% rally on Saturday, while Bitcoin continues to be the cryptomarket barometer, Bitcoin’s hashrate taking a leap on Saturday from 48.705E to 52.682E, reflecting the level of support Bitcoin receives in spite of the extended bearish trend remaining intact.

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At the time of writing, Bitcoin was up 0.13% to $7,206.6, with Bitcoin recovering from an early morning dip to a morning low $7,135.3 to a morning high $7,210, before steadying, the recovery seeing Bitcoin move back into positive territory for the day.

In spite of a choppy start to the day, Bitcoin steered clear of the day’s first major support level at $7,051.97, while also falling short of $7,300 levels and the day’s first major resistance level at $7,310.57.

For the day ahead, holding on to 7,200 levels through the morning would support a second half of a day rally to bring $7,300 levels and the day’s first major resistance level at $7,310.57 into play, while Bitcoin will likely continue to fall short of the 38.2% FIB Retracement Level of $7,376, with end of the week profit taking likely to limit Bitcoin’s gains on the day.

Failure to hold on to $7,200 levels through the morning could see Bitcoin slide back through the morning low $7,135.3 to bring sub-$7,100 levels and the day’s first major support level at $7,051.97 into play, while we would expect Bitcoin to steer clear of sub-$7,000 levels barring materially negative news hitting the wires.