Bitcoin fell by 0.63% on Monday, following on from Sunday’s 0.17% loss, to end the day at $8,168.7.
A choppy start to the day saw Bitcoin recover from a fall through the first major support level at $8,125.57 to a morning low $8,065.1, bouncing back to an early intraday high $8,301.7, just short of the first major resistance level at $8,315.87.
Negative sentiment across the market weighed through the late morning and early afternoon, with Bitcoin sliding back through the first major support level at $8,125.57 and second major support level at $8,029.13 to an intraday low $7,861.2 before a late afternoon recovery.
The break back through the major support levels by the day’s end was certainly a positive, with Bitcoin also managing to steer clear of the 23.6% FIB Retracement Level of $7,857 on the day, the moves affirming the near-term bullish trend that was formed back at 24th June’s swing lo $5,755.
While the 2nd half of the day recovery saved Bitcoin and the broader market from some quite heavy losses, Bitcoin’s recent string of weekly gains have come in spite of some choppy moves and the start of the week will raise some concerns over what lies ahead, with $8,200 continuing to be a key level, though the positive for the Bitcoin bulls was the level of support at sub-$8,000 levels.
On the news front, there was no particularly negative news to cause the slide to sub-$8,000 levels, with investors continuing to fret over whether the SEC will approve any Bitcoin ETFs to support the much needed inflow of institutional money.
On the regulatory front, a delay to the roll out of unified rules and regulations by the G20 will leave the markets on tender hooks until October, the deadline having been previously set to today. The delay could force the South Korean government to introduce interim regulations to safe guard investors, which could weigh on the broader market should anti-money laundering rules and requirements for crypto exchanges to step up security levels be too cumbersome.
At the time of writing, Bitcoin was down 0.85% to $8,110, with Bitcoin pullback from a start of a day $8,178 high to a morning low $8,095 before recovering to $8,100 levels, the early moves through the day leaving the major support and resistance levels untested.
For the day ahead, a hold at $8,100 levels through the morning will be needed to support a run at the morning $8,178 high to bring the $8,200 levels into play, with Bitcoin having struggled to hold on to the key level of $8,200 since the formation of the near-term bullish trend. Any recovery will likely leave the first major resistance level at $8,359.87 out of play on the day.
Failure to hold on to $8,100 levels through the morning could see Bitcoin slide back through the morning $8,095 low to bring the first major support level at $7,919.37 into play, with the 23.6% FIB Retracement Level of $7,857 in play should sentiment across the broader market not improve through the afternoon.
For the now the near-term bullish trend remains intact, but a failure by Bitcoin to make a move near-term back through to $8,500 levels could ultimately lead to a more material pullback.