Bitcoin’s in positive territory in the early part of the morning, with $7,700 the key target for the Bitcoin bulls today. Things could become quite bearish should Bitcoin tread water and fail to make a move.
Bitcoin gained 1.56% on Saturday, following Friday’s 0.61% rise, to end the day at $7,638.1, Bitcoin’s highest day’s end since 23rd May’s $7,986.3.
A start of the day $7,441.5 low held above the day’s first major support level at $7,373.8 leading to a mid-morning rally through the day’s first major resistance level at $7,644.04 to an intraday high $7,698.8 before easing back below the major resistance level by the day’s end.
Bitcoin’s mid-morning surge left the rest of the day relatively range bound, with Bitcoin’s only test being a mid-afternoon intraday high $7,698.8 and afternoon low $7,590.0.
A move was expected and Bitcoin delivered, though for the Bitcoin bulls, falling short of $7,700 levels and the 23.6% FIB Retracement Level of $7,738 continued to leave the extended bearish trend intact, with a pullback to 29th May’s swing lo 7,040 and sub-$7,000 levels still on the cards.
Market sensitivity towards regulatory chatter remains an issue for the cryptomarket and, while the week has delivered some relief for Bitcoin, any material recovery to bring $10,000 levels into play will remain some way off for now.
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At the time of writing, Bitcoin was flat at $7,638.3, recovering from a morning $7,600 low in what’s been a relative choppy start to the day, Bitcoin hitting an intraday high $7,668.1 before the morning’s low that held well above the day’s first major support level at $7,486.8.
Holding at $7,600 will have been the positive through the morning, while Bitcoin has yet to test key resistance levels, with the 23.6% FIB Retracement Level of $7,438 and the day’s first major resistance level at $7,744.1 some way off.
For the day ahead, a move back through the morning’s $7,668.1 high would support a run at $7,000 levels, with the Bitcoin bulls targeting the 23.6% FIB Retracement Level of $7,738 to support an near-term bullish trend.
Failure to move back through the morning’s high to test selling pressure at the 23.6% FIB Retracement Level would support a pullback, with any slide back to $7,500 levels likely to bring the day’s first major support level at $7,486.8 into play, with broader market sentiment to have a hand in the level of support Bitcoin will find at sub-$7,500 levels, the bears continuing to eye sub-$7,000 levels before letting go of the reins.
In spite of the possible downside and concerns over the regulatory outlook, Bitcoin will likely find support through the morning, though investors will need to look out for a late in the day reversal ahead of the new week, with concerns over possible negative news likely to limit the upside potential following three consecutive days of gains.
Elsewhere in the cryptomarket, Monero’s XMR led the way with a 2.55% gain at the time of writing, while EOS was the worst performer, down 1.74% off the back of the end to its 1-year initial coin offering that was reported to have raised $4bn.