Bitcoin – Will it be a Weekend Rally or Back to Sub-$8,000Bitcoin pulls back in the early hours, with $8,200 levels needed to support an afternoon rebound through to $8,300 levels to lock in the week’s gains.
Bitcoin rose by just 0.63% on Saturday, following Friday’s 3.2% recovery, to end the day at $8,239.7.
A relatively range bound start to the day saw Bitcoin move through to a morning high $8,240.5 before easing back through the late morning to an early afternoon intraday low $8,055 that steered well clear of the first major support level at $7,908.4.
For the Bitcoin bulls, avoiding a pullback to sub-$8,000 levels was the positive for the day, with Bitcoin finding plenty of support at around $8,000 levels to move back through the afternoon to a late in the day intraday high $8,262.
While the day’s first major resistance level at $8,384.3 was left untested, Bitcoin managed to avoid calling on support at the 23.6% FIB Retracement Level of $7,857, following Friday’s $7,815.1 low, though striking a new swing hi in the coming days will be needed for Bitcoin to avoid a pullback.
$9,000 will be the Bitcoin bulls’ next target, but until there is a move back through the 24th July swing hi $8,506.7 to $8,600 levels, we can expect Bitcoin to continue to struggle, $9,000 levels last reached back on 11th May.
There was no particularly negative news hitting the wires through the first half of the weekend to influence the markets, with Bitcoin still looking good for another week of double digit gains, though South Korea is looking to roll out regs in order to force exchanges to improve anti-money laundering policies and to beef up security levels to reduce the number of thefts that continues to rise.
The cryptomarket and governments, including the South Korean government, have been waiting for the G20 unified rules and regulations to be rolled out, with a 31st July deadline having been agreed at the last Summit.
Neither governments nor regulators are likely to wait, particularly if the 31st deadline comes and goes.
At the time of writing, Bitcoin was down 0.05% to $8,231.2, with Bitcoin seeing an early move from an opening $8,235.7 to a start of a day morning high $8,313.3, falling short of the first major resistance level at $8,316.13, before pulling back to $8,200 levels.
For the day ahead, a move back through to $8,270 would support a move back through to $8,300 levels to bring the day’s first major resistance level at $8,316.13 back into play, with the second major resistance level at $8,392.57 in play should a weekend rally kick in later in the day.
Failure to break back through $8,270 to $8,300 levels could see Bitcoin hit reverse later in the day to bring the day’s first major support level at $8,109.13 into play, with sentiment across the broader market to dictate whether sub-$8,000 support levels will be tested before any recovery.
For the Bitcoin bulls, holding above $8,200 through the morning will be key, though whether a weekend rally will kick in remains to be seen, with investors being conscious of an imminent roll out of rules and regs by the G20.