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Bitcoin – Tight Ranges end in Tears

Bob Mason

Bitcoin gained 0.5% on Saturday, reversing Friday’s 0.18% fall, to end the day at $6,512.7, a first hold at $6,500 levels since 6th September, with the upward move giving Bitcoin a 4.12% gain for the current week.

A relatively choppy day saw Bitcoin ease to a mid-morning intraday low $6,465.6 before drawing in buyers, Bitcoin steering clear of the day’s first major support level at $6,356.43. A broad based cryptomarket rally supported a Bitcoin move through to an early afternoon intraday high $6,572.2 before giving up some of the day’s gains in the final hours

In spite of a late sell-off, Bitcoin held on to $6,500 levels, while failing to break through the day’s first major resistance level at $6,597.73 to $6,600 levels, which will have been an issue for the Bitcoin bulls, Bitcoin having struggled at $6,500 levels of late and in need of a breakout to hold off a possible reversal to $6,300 levels.

The lack of a major move across the broader market saw Bitcoin’s dominance hold relatively steady through the day, with the lack of direction likely to test investor resolve as the new week approaches, though for the Bitcoin bulls a positive take away from Saturday was Bitcoin’s quick recovery from sub-$6,500 levels late in the day, suggesting that, while investor jitters may linger over what lies ahead on the regulatory front, sub-$5,000 levels may be averted.

It’s ultimately going to come down to whether Bitcoin’s larger investors, more commonly known as the Bitcoin whales, stay in the game in anticipation of a return to the dizzying heights of $19,000 or cash out in fear of a crypto collapse akin to the one seen through the start of the year, Bitcoin having pulled back to sub-$6,000 levels on a number of occasions in the year, the last time being on 14th August, with any strong words from regulators likely to motivate some of the whale to lock in some impressive gains.

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At the time of writing, Bitcoin was down 0.45% to $6,483.6, with Saturday’s late reversal continuing into the early hours of this morning, Bitcoin falling to a morning low $6,478.1 before steadying, the moves through the early morning leaving the day’s major support and resistance levels left untested.

For the day ahead, a move back through to $6,500 and hold above $6,515 through the late morning would support a run at the day’s first major resistance level at $6,568.07, to bring $6,600 levels back into play, though we would expect Bitcoin to face plenty of resistance on any run at $6,600 levels on the day.

Failure to move back through to $6,500 levels could see Bitcoin pullback through the morning low $6,478.1 to call on support at the day’s first major support level at $6,461.47, with the second major support level at $6,410.23 and sub-$6,400 level in play should sentiment fail to improve through the afternoon.

Bitcoin has found plenty of support of late and, while the daily lows have been on an upward path, there’s been no real sign of an upward move on Bitcoin’s price floor from $6,100 levels.

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This article was originally posted on FX Empire

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