Bitcoin – With $6,500 Resistance Weighing, What’s next for Bitcoin?

Can Bitcoin break back through to $6,500 levels and break out through to $6,600 levels or will be sub-$6,500 by the day’s end?
Bob Mason
Bitcoin 3

Bitcoin slumped by 1.49% on Thursday, reversing Wednesday’s 0.81% gain, to end the day at $6,475.3.

A bearish start to the day saw Bitcoin fall from a start of a day intraday high $6,585 to an early morning low $6,496.7 before finding early support, driving Bitcoin back through to $6,500 levels and an early afternoon high $6,562.4.

A choppier day than normal saw Bitcoin fall through the day’s first major support at $6,517.6 early on, while leaving the major resistance levels untested. In spite of the Bitcoin bulls managing to cross the $6,500 line, it didn’t take long for Bitcoin to slide back to sub-$6,500 levels, a late afternoon reversal seeing Bitcoin fall back through the first major support level at $6,517.6 to test the second major support level at $6,462.3 with an intraday low $6,460 before moving through to $6,470 levels.

The news wires may well have contributed to the reversal that left Bitcoin in the red for the current week, with a number of negative reports hitting the wires over the last 24-hours.

One particularly interesting one was Swift’s response to rumours of Ripple and Swift partnering to deliver faster and cheaper cross border remittances. Interesting when considering the fact that Ripple is more likely to be Swift’s direct competitor rather than collaborator, nonetheless, the news initially weighed on Ripple’s XRP before a bounce back this morning, with the cryptomarket at the mercy of the news, fake or otherwise.

For Bitcoin, the lack of news from the SEC is yet to be worrying, but when reading a number of reports from institutions that have clearly articulated a lack of institutional investor interest in Bitcoin and the broader market, the bullish sentiment towards the approval of the pending Bitcoin EFTs may be overplayed near-term.

Of certainty will be the fact that institutional money will not just pour into unregulated markets and, until the G20 roll out their rules and regulations, the new money will likely be on hold and after an initial rally in response to any SEC approvals, Bitcoin could well slide back to its comfort zone, nestled just shy of $6,500.

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At the time of writing, Bitcoin was up 0.3% to $6,494.8, with Bitcoin moving from a start of a day morning low $6,479.1 to a morning high $6,498.5 before easing back, resistance at $6,500 continuing to be the Bitcoin bulls’ bug bear ahead of the weekend.

A range bound start to the day, following Thursday’s reversal left the major support and resistance levels left untested early on, with the upward momentum this morning being seen across the broader market, with Ripple’s XRP amongst the front runners early on.

For the day ahead, a move through to $6,510 by the early afternoon would support a break out from its current ranges to bring the first major resistance level at $6,553.53 into play before any pullback, $6,600 levels unlikely to be in play today, barring particularly positive news hitting the wires.

Failure to move back through to $6,500 levels will leave Bitcoin in the hands of the bears for the rest of the day, with a pullback through the morning low $6,479.1 likely to see Bitcoin call on support at the first major support level at $6,428.53 before any recovery, more material declines unlikely barring materially negative news hitting the wires.

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