Bitcoin fell by 1.85% on Saturday, following Friday’s 1.58% fall, to end the day at $7,318.9, leaving Bitcoin down 14.1% for the current week.
An early morning rally saw Bitcoin break into $7,600 levels with an intraday high $7,624.1, coming within reach of the day’s first major resistance level at $7,634.53 before easing back to $7,500 levels and a particularly range bound afternoon that left the day’s support and resistance levels untested until a late in the day sell-off.
Bitcoin fell through the day’s first major support level at $7,298.63 to an intraday low $7,281 before recovering to $7,300 levels by the day’s end.
Failing to break through the day’s first major resistance level, while testing the day’s first major support level reaffirmed the bearish trend formed in early May, with Bitcoin coming nowhere near the 23.6% FIB Retracement Level at $7,906.4 and $8,000 levels needed to begin a bearish trend reversal.
There was no materially negative news hitting the wires to pin Bitcoin back through the day, with investor sentiment continuing to be on the bearish side following news out of the U.S, South Korea and Japan in recent weeks on probes into cryptomarket exchanges and trading practices.
At the time of writing, Bitcoin was down 0.81% to $7,268, with the late Saturday sell-off spilling into the early hours of the day.
A start of the day intraday low and new swing lo $7,220 managed to hold above the day’s first major support level at $7,191.9 before recovering to current levels, though the Bitcoin bulls are certainly not out of the woods yet, with Bitcoin’s first major resistance level at $7,535 and 23.6% FIB Retracement Level of $7,906.4 some way off.
For the day ahead, a move back through the morning’s $7,330.8 high to $7,410 would support a run at the day’s first major resistance level at $7,535 before any reversal, with Bitcoin investors likely to face plenty of resistance at $7,500, pinning back any run at the day’s second major resistance level at $7,751 and the 23.6% FIB Retracement Level of $7,906.4.
Investors have continued to lock in profits early, leading to the downward trend in daily highs, with Bitcoin now having failed to touch $8,000 levels for a 3rd consecutive day.
Failing to move back through to $7,400 levels would support another day in the red, with Bitcoin likely to test the day’s first major support level at $7,191.9 and the second major support level at $7,064.9 before any recovery.
How far Bitcoin slides before a bearish trend reversal kicks in remains to be seen, but sub-$6,000 levels will likely be in sight, particularly when considering what’s to come for the cryptomarkets this summer, global and ‘in-country’ regulations expected to hit the markets hard.
With Bitcoin in the red, the rest of the majors followed, Stellar’s Lumen seeing the heaviest losses, down 2.97%, with Monero down 2.33% and Bitcoin Cash down 2.37% and things could get worse should hopes of a weekend rally continue to fade through the morning.
This article was originally posted on FX Empire
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