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Bitcoin – Bulls Continue to Hold On, $6,400 Needed to Avoid a Reversal

Bob Mason

Bitcoin rose by 1.44% on Monday, following on from Sunday’s 1.13% gain, to end the day at $6,330.

A positive start to the day saw Bitcoin move through to an early intraday high $6,373.7 before easing back, the day’s high seeing Bitcoin fall short of the first major resistance level at $6,429.1.

Tracking the broader cryptomarket through the morning and early afternoon, Bitcoin succumbed to selling pressure, falling back to a late afternoon intraday low $6,219 before recovering, Bitcoin managing to steer clear of $6,100 levels and the day’s first major support level at $6,110.7.

A late recovery saw Bitcoin buck the broader market trend, with Bitcoin breaking back through to $6,300 levels and into positive territory for the day.

In spite of a second consecutive day of gains, the extended bearish trend continues to remain intact, with Bitcoin yet to take a run at the 23.6% FIB Retracement Level of $6,757 needed to bring $7,000 levels into play that would support the formation of a bearish trend reversal.

On the news front, regulatory news weighed on the crypto market in the early part of the, the decision by the SEC to suspend a number of cryptocurrency trading products adding fuel to the already negative sentiment seen across the cryptomarket.

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At the time of writing, Bitcoin was up 0.18% to $6,326.1, with Bitcoin seeing Monday’s late in the day recovery continue into the early hours, Bitcoin rising from a start of a day morning low $6,292.7 to an early morning $6,399.6 high before reversing.

The moves through the early part of the day saw Bitcoin steer clear of the day’s first major support level at $6,241.43, while testing the day’s first major resistance level at $6,396.13 before pulling back.

For the day ahead, a move back through the day’s first major resistance level at $6,396.13 would support another run at $6,400 levels to bring the day’s second major resistance level at $6,462.27 into play, though for Bitcoin to break out from the first major resistance level, sentiment across the broader market will need to materially improve ahead of Thursday’s EU finance ministers meeting.

Failure to move back through the first major resistance level to break into $6,400 levels could see Bitcoin hit reverse later in the day, with a pullback through $6,310 likely to bring the day’s first major support level at $6,241.43 into play.

Bitcoin has found plenty of support of late, avoiding sub-$6,100 levels in spite of the lingering fear of a material shift in the regulatory landscape. Holding on to $6,300 levels through the morning will be key for Bitcoin to avoid coughing up two consecutive days of gains that included a trend bucking move late in the day on Monday.

While the bears will be looking towards this Thursday’s meeting, eyeing up sub-$6,000 levels, there are plenty of other drivers for investors to continue factoring in, these including ongoing SEC decisions and review of Bitcoin ETFs and other cryptomarket investment products and the much talked about unified G20 rules and regs.

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This article was originally posted on FX Empire

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