The Bitcoin Bulls are on the Move after Weathering Another Bear StormBitcoin is on the move. A hold above $6,450 through the late morning could deliver a much needed rally as sentiment improves following the latest sell-off.
Bitcoin gained just 0.71% on Thursday, following Wednesday’s 1.11% rise, to end the day at $6,315, the 2nd consecutive day of gains taking Bitcoin into positive territory for the week.
A continuation of Wednesday’s late sell-off saw Bitcoin pullback to a start of a day intraday low $6,193.03, Bitcoin managing to steer clear of the day’s first major support level at $6,076.13 and, more importantly, sub-$6,000 levels for a 2nd consecutive day.
Recovering to $6,200 levels and a range bound morning, Bitcoin moved through to a late morning intraday high $6,476.7, falling short of $6,500 levels and the first major support level at $6,543.73 before easing back.
A choppy afternoon saw Bitcoin fall short of $6,500 levels for a second time, leading to a pullback to $6,300 levels by the day’s end.
For Bitcoin, $6,200 continues to be the key level, with support continuing to kick in at sub-$6,200, while $6,500 has become a key resistance level in recent sessions.
The moves through the day may have seen Bitcoin steer clear of major support levels, but with Bitcoin continuing to fall short of the 23.6% FIB Retracement Level of $6,757 and $7,000 levels, the extended bearish trend, formed back at 5th May’s swing hi $9,999, remains intact.
On the news front, there was nothing on the regulatory front to rock the boat going into the 2nd half of the week, though investors remain cautious over the near-term as reflected by the relatively quick reversals on the upside, investors locking in profits ahead of any materially negative news.
Support remains ever present however, with Bitcoin having made a speedy recovery from sub-$6,000 levels, while some of the other majors continue to languish at levels not seen since before the late 2017 rally.
At the time of writing, Bitcoin was up 2.74% to $6,488.4, with a late pick up through Thursday continuing into the early hours, Bitcoin breaking through the first major resistance level at $6,456.83 to a morning high $6,511.
For the day ahead, holding above $6,450 would continue to support upward momentum for Bitcoin though the day, with a move through to $6,550 supporting a run at the second major resistance level at $6,598.67 to bring $6,600 levels into play, while we will expect Bitcoin to continue to fall short of the 23.6% FIB Retracement Level of $6,757 on the day.
Failure to hold above $6,450 through the late morning could see Bitcoin begin to give up gains made from the early part of the day, with a pullback to a start of a day $6,290 low bringing the day’s first major support level at $6,193.03 into play before any recovery.
We will expect Bitcoin to hold on to $6,300 levels in the event of a reversal, with moves through the early part of the day and sentiment across the broader market supporting a bullish day, the bulls continuing to eye $6,700 levels near-term.