Bitcoin jumped by 8.52% on Tuesday, following on from Monday’s 4.33% gain and last week’s 16.5% rally, to end the day at $8,376.2.
It was onwards and upwards throughout the day, with barely any red on the chart, as Bitcoin moved from a start of a day intraday low $7,690 through the day’s first major resistance level at $7,901.2 and second major resistance level at $8,083.6 to a late in the day intraday high and new swing hi $8,506.7, coming within reach of the third major resistance level at $8,529.6 before easing back to $8,300 levels.
The moves through the day left little doubt of Bitcoin’s bearish trend reversal, with the near-term bullish trend having been formed at 24th June’s swing lo $5,755
For the Bitcoin Bulls, the first part of the recovery mission is complete, with Bitcoin gaining strong momentum in the run through to $8,000 levels, side lined investors jumping in on hopes of a move back through to $10,000, while investors exposed to altcoins also moved back into Bitcoin that has outperformed the likes of Bitcoin Cash and left Litecoin and Ripple’s XRP in the dust, the Bitcoin dominance reflecting the shift in sentiment since May’s dip.
On the news wires, talk of the SEC bringing the Bitcoin ETF debate back to the table provided support through the start of the week, while last week’s talk of the cryptomarket posing no threat to global financial stability, as outlined by the FSB and regulators, eased market fears of a heavy handed set of new rules and regs that could cripple the market, which had kicked off the Bitcoin rebound that led to Bitcoin’s 16.5% gain last week.
While the SEC is bringing the ETF decision back to the table, there’s no guarantee that any progress will be made, which does leave Bitcoin exposed and then there are the G20 rules and regs to consider once they roll out, which are expected to be market friendly, but could be quite the opposite.
There’s plenty still in the way of a swift move back through to $10,000 levels, with investors needing to get comfortable with current levels and some possible volatility in the coming weeks before the Bitcoin bulls make their next move.
One things is for sure, the bulls are not lacking patience, having bided their time to break back through to $8,000 levels.
At the time of writing, Bitcoin was up 0.26% to $8,411.8, in what’s been a relatively choppy start to the day, an early move through to a morning high $8,488.1 coming up short of the first major resistance level at $8,691.93 and Tuesday’s $8,506.7 high before easing back to a morning low $8,275.
With the morning’s moves steering clear of the day’s first major support level at $7,875.23 and the 23.6% FIB Retracement Level of $7,857, a bounce back through to $8,400 levels is an indication of support levels, with Bitcoin managing to avoid a sell-off in the early hours.
For the day ahead, a move through Tuesday’s 8,506.7 high would support a run at the first major resistance level at $8,691.93 to bring $9,000 levels back into play later in the day, though the news wires will need to be friendly and a move through to $8,500 levels will need to come sooner rather than later to keep the momentum going.
Failure to move back through Tuesday’s high could see Bitcoin pullback through to the morning low, $8,257, while we will expect Bitcoin to steer clear of sub-$8,000 levels and the day’s first major support level at $7,875.23 on the day, Bitcoin likely to consolidate the early part of the week’s gains should $8,500 levels not be reached in the early afternoon.