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Bitcoin – Bulls Struggle to Get out of the Ranges

Bob Mason

Bitcoin fell by 0.89% on Thursday, partially reversing Wednesday’s 1.24% gain, to end the day at $6,531.1.

Following a start of the day dip, Bitcoin rebounded to an intraday high $6,704.7 in the early hours of the day, which fell short of the 23.6% FIB Retracement Level of $6,757 and the day’s first major resistance level at $6,778.5 before easing back to $6,600 levels through the remainder of the morning.

Any hopes of a second consecutive day of testing resistance at the 23.6% FIB Retracement Level of $6,757 were lost through the afternoon, with Bitcoin sliding in the mid-afternoon to an intraday low $6,432.4 before recovering to $6,500 levels, Bitcoin managing to avoid calling on support at the day’s first major support level at $6,407.7.

For the Bitcoin bulls, it was yet another day where investors were unable to capitalize on bullish moves through the previous day, Bitcoin having tested resistance at the 23.6% FIB Retracement Level for the first time since 11th June on Wednesday.

The failure to hold on to $6,700 levels and a pullback to $6,500 levels continued to support the extended bearish trend formed at 5th May’s swing hi $9,999 though, for the Bitcoin bulls, the good news will be further evidence of Bitcoin having bottomed out at 24th June’s swing lo $5,755.

With the news wires on the quieter side, the reversal was relatively minor on Thursday, a continued threat of heavy handed cryptomarket regulations being rolled out in the summer pinning back Bitcoin and the broader markets through the summer.

We continue to view $6,700 levels as a key level for Bitcoin and the Bitcoin bulls this week, with any pullback to sub-$6,300 levels likely to bring sub-$6,000 levels back into play before any recovery.

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At the time of writing, Bitcoin was down 0.32% to $6,510.2, with the start of the day being relatively range bound when compared with some of the majors.

An early morning $6,552.4 fell short of the day’s first major resistance level at $6,682.73 and more importantly, $6,700 levels, with a mid-morning $6,485 low coming within reach of the day’s first major support level at $6,401.43 before recovering to $6,500 levels.

For the day ahead, moving through to $6,553.07 would support a run at the day’s first major resistance level at $6,682.83 and, while Bitcoin may have some influence on sentiment across the broader market, Bitcoin may well find resistance too great to break back through to $6,700 levels for a 3rd consecutive day should sentiment across the cryptomarket not improve in the early afternoon.

Failure to move through $6,553.07 to take a run at $6,680 levels could see Bitcoin take bigger hit through the early afternoon to test support at the first major support level at $6,401.43 before recovering, sub-$6,400 support levels unlikely to be tested through the day.

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This article was originally posted on FX Empire

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