Bitcoin gained just 0.37% on Wednesday, following a 0.33% rise on Tuesday, to end the day at $6.759.7.
Bitcoin fell through the day’s first major support level at $6,641.67 to an early $6,560 low before recovering to $6,600 levels and a relatively range bound morning that left Bitcoin struggling to break back through the first major support level at $6,641.67 until a broad based market rebound saw Bitcoin move back through $6,700 levels to an intraday high $6,825.
The early afternoon high fell short of the day’s first major resistance level at $6,834.87 and well short of the 23.6% FIB Retracement Level of $7,026 to continue supporting the extended bearish trend formed at 5thMay’s swing hi $9,999.
Following a bullish 4.18% bounce on Monday, the range bound moves through the middle of the week leaves Bitcoin exposed to a possible reversal, with sub-$6,000 levels still a distinct possibility, particularly if there are further hacks across the major exchanges and regulators and governments deliver a heavy blow on the regulatory side.
A lack of material news through the day left Bitcoin relatively flat however, with the broader market lacking direction, the major cryptos also relatively flat through the first half of the week, gains from the start of the week being coughed up through the middle of the week.
At the time of writing, Bitcoin was down 0.24% to $6,744, in what’s been a choppier start to the day than normal, with Bitcoin moving through to a morning high $6,788.8 before pulling back to a late morning $6,679.3 low.
In spite of the choppy start to the day, the first major resistance level at $6,869.8 and first major support level at $6,604.8 were left untested through the morning as the Bitcoin bulls look to pull Bitcoin out of a mid-week rut that’s seen Bitcoin closed out at $6,700 levels for 3-consecutive days.
For the day ahead, a move through the morning’s $6,788.8 high to Wednesday’s $6,825 high would support a run at the first major resistance level at $6,869.8 to give the Bitcoin bulls a run at $7,000 levels later in the week, though for Bitcoin to hold on to $6,800 levels, the move will need to come through the early afternoon.
Failure to move through to $6,800 levels would likely see Bitcoin pullback through the afternoon, bringing sub-$6,700 level into play, though we would expect Bitcoin to avoid testing the day’s first major support level at $6,604.8 barring materially negative news hitting the wires.
While the extended bearish trend remains intact and the risk of a slid to sub-$6,000 levels remains, Bitcoin has managed to avoid a pullback to 13th June’s swing lo $6,107.9, which has been viewed as a likely near-term bottom to the bearish trend, though a reversal to the bearish trend will be needed soon to avoid the dreaded and much talked about slid to sub-$6,000 levels in the summer.
Elsewhere, Ripple’s XRP, Stellar’s Lumen and EOS bucked the trend through the morning with gains, while NEM’s XEM led the way down, with a 1.89% fall through the first half of the day.