Bitcoin rallied 5.59% on Monday, following on from the weekend gains, to end the day at $6,702.3.
A particularly range bound start to the day saw Bitcoin’s intraday low $6,327.1 hold well above the day’s first major support level at $6,255.33, the early moves a consolidation of the weekend’s gains, before a mid-morning broad based cryptomarket rally saw Bitcoin surge through the day’s major resistance levels to an intraday high $6,750 before easing back late in the day.
Following 6-consecutive’s of falling well short of the 23.6% FIB Retracement Level of $6,757, selling pressure was tested late in the day, with Bitcoin’s day end hold at $6,700 levels for only 3rd time this month providing some hope for the Bitcoin bulls of a bearish trend reversal forming.
Holding above the day’s major resistance levels was also a positive sign for Bitcoin and the broader markets, with the daylong rally coming off the back of news that Warren Buffet’s Blackrock was taking a closer look at a possible move into the crypto space, Blackrock’s crypto team needing to look closer as more institutional money heads for the cryptomarket.
While Blackrock is not actually looking to invest into the likes of Bitcoin itself, the very fact that internal working groups within the organization are continuingly exploring possible exposure is a positive when considering the fact Blackrock’s previously shared views on the cryptomarket.
As the world’s largest banks look to offer investors a platform to garner exposure into the cryptomarkets, it’s no real surprise that Blackrock needs to keep an open mind.
At the time of writing, Bitcoin was down 0.89% to $6,669.3, with a start of the day move through to a morning high $6,771 seeing Bitcoin test the 23.6 FIB Retracement Level of $6,757 before pulling back to $6,600 levels, the day’s major resistance level at $6,859.17 left untested early on.
For the day ahead, a move back through the morning high $6,771 would support a run at the day’s first major resistance level at $6,859.17 to bring $7,000 levels into play for the first time since 11th June’s day high $7,498.6, any breakout from the 23.6% FIB Retracement Level of $6,757 supporting the formation of a near-term bullish trend.
Failure to move back through the morning’s $6,771 high could see Bitcoin pullback further in the afternoon, with a fall back through the morning’s $6,667.4 low supporting a test of the day’s first major support level at $6,576.27 before any recovery, Bitcoin likely to hold on to $6,700 levels by the close to consolidate Monday’s gains.