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Bitcoin – The Bulls Are in Control, As Bitcoin Extends Its Gains

Bob Mason

Bitcoin gained 0.96% on Saturday, partially reversing the week’s only loss on Friday, to end the day at $7,403.4, with Bitcoin up 16.64% for the current week.

A start of the day slide to an intraday low $7,221 saw Bitcoin call on support at the 23.6% FIB Retracement Level of $7,230 to avoid heavier losses and a resumption of the extended bearish trend that had been formed at 5th May’s swing hi $9,999.

Bitcoin recovered through to a mid-morning $7,356.2 high that fell short of the first major resistance level at $7,587.63, before pulling back to test support at $7,300 through the late morning.

An afternoon rally saw Bitcoin break out from the 23.6% FIB Retracement Level once more, easing immediate concerns of a tumble and a reversal of the near-term bullish trend, formed back at 24th June’s swing lo $5,755.

Bitcoin stuck an intraday high $7,459 in the late afternoon and, while Bitcoin fell short of testing the day’s first major resistance level at $7,587.63, moving back through to $7,400 levels was key for the Bitcoin bulls, a pullback through the 23.6% FIB Retracement Level of $7,230 likely to see Bitcoin back at sub-$7,000 levels.

There was no particularly material news driving Bitcoin and the broader market on Saturday, with the moves in recent days giving investors some comfort with the knowledge that support levels are playing a role in Bitcoin’s recovery, which is in contrast to some of the majors that have pulled back below key levels hit in the early part of the week.

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At the time of writing, Bitcoin was down 0.15% to $7,392.5 in what’s been a choppy start to the day, Bitcoin pulling back to a start of the day low $7,329.1 before a bounce back to an early morning $7,486.9 high, the early morning moves leaving the first major support level at $7,263.27 and first major resistance level at $7,501.27 untested through the early hours.

For the day ahead, a move back through $7,460 would support a run at $7,500 levels to bring the first major resistance level at $7,501.27 into play, though sentiment across the broader market will need to improve for Bitcoin to avoid succumbing to a late sell-off, a breakout from the first major resistance level needed to keep investors back from pulling out going into Monday.

Failure to move back through $7,460 could see Bitcoin come under pressure later in the day, with a pullback through the morning low $7,329.1 bringing $7,200 levels and the day’s first major support level at $7,263.13 into play before any recovery.

Any slide through the 23.6% FIB Retracement Level of $7,230 could see Bitcoin come under more intense selling pressure later in the day, with investors more than conscious of how quickly sentiment can shift to reverse the near-term bullish trend.

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This article was originally posted on FX Empire

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