Bitcoin – What’s Next for the Bears?

Bitcoin slid by 10.2% on Sunday, following Saturday’s 1.86% fall, to end the week down 11.9% at $6,732.

A start of the day fall on Sunday morning saw Bitcoin slide through the first major support level at $7,387.6 and second major support level at $7,301.3 before steadying through the late morning.

Bitcoin’s failure to move back through the day’s major support levels led to a second sell-off through the mid-afternoon, with Bitcoin falling through the day’s third major support level at $7,066.3 to an intraday low $6,618.9 before recovering to a day’s ending $6,732.

The moves through the day saw Bitcoin give up plenty of ground to the bears, with the moves affirming the extended bearish trend formed at 5^th May’s swing hi $9,999, supported by Bitcoin’s new swing lo $6,618.9 on Sunday.

Speculation over the cause of the broad market sell-off through the early part of this morning ranged from a small South Korean crypto exchange being hacked to a more reasonable cause, the ongoing investigations by U.S regulators that led to news of subpoenas being issued to the world’s largest crypto exchanges seeing investors balk.

The undertone has been ever present and the likely cause for Bitcoin and the broader markets not seeing any rebound from May’s bearish trend, a near-term bullish trend formed in late May having come to an abrupt end over the weekend.

Concerns over how heavy handed regulators will be on the cryptocurrency market will continue to linger until regulations have been rolled out and market sensitivity was reflected in Sunday’s reversal.

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At the time of writing, Bitcoin was down 0.21% to $6,743.9, with the start of the day having been range bound relative to its peers, with a morning high $6,807.3 and low $6,689.4 seeing Bitcoin steer well clear of the day’s major resistance and support levels.

For the day ahead, a move through $6,949.83 would be needed for Bitcoin to have a run at $7,000 levels and the day’s first major resistance level at $7,280.77, with any more material gains unlikely for the day, the bears unlikely to give up too easily in the wake of the weekend sell-off.

Failure to move back through to $7,000 levels will likely see Bitcoin pullback to $6,500, bringing the day’s first major support level at $6,401 into play before any recovery late in the day.

As far as the cryptomarket is concerned, range bound moves tend to be spell trouble for the cryptos and, while the broader market has seen a partial recovery through the early hours, Bitcoin’s failure to make a move could undermine a broad based recovery through the day.

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