Bitcoin – Here Come the Bulls!
Bitcoin slipped by 1.24% on Wednesday, partially reversing Tuesday’s 5.12% recovery, to end the day at $7,372.4.
A relatively range bound morning saw Bitcoin ease from an early intraday high $7,560 through to a morning low $7,435, leaving the day’s first major resistance level at $7,651.33 and the day’s first major support level at $7,155.33 untested before a mid-day sell-off hit across the cryptomarket.
Your capital is at risk
Bitcoin slid through to an intraday low $7,270.5 before recovering to $7,300 levels by the day’s end, the good news for the Bitcoin bulls being Bitcoin steering clear of the day’s major support levels, though Bitcoin has continued to fall well short of the 23.65 FIB Retracement Level of $7,738.
Following positive news hitting the wires this week, a shift in sentiment is apparent and reflected in moves through the middle part of the week, with rallies extending beyond the recent tight ranges, Bitcoin having managed to break through resistance levels this week, though some caution remains in the market that has pinned Bitcoin back from a bearish trend reversal.
The South Korean government may have instilled some optimism toward the crypto regulatory landscape and, while Japan may take a similar line, China and the U.S seem to be eager to take a more influential position on the market, which could overshadow any favourable regulatory environments elsewhere.
We will expect the uncertainty to have less of an influence near-term however, though the news wires are more than capable of shifting sentiment.
Get Into Cryptocurrency Trading Today
At the time of writing, Bitcoin was up 2.7% to $7,574, bouncing back from an early morning $7,338 low to an intraday high $7,599.7, breaking through the day’s first major resistance level at $7,531.43 and holding.
With Bitcoin having avoided the day’s first major support level at $7.241.93 in the early hours, the morning’s moves support a break through $7,600 levels to bring the day’s second major resistance level at $7,690.47 into play, while the 23.6% FIB Retracement Level of $7,738 will likely remain out of reach until the weekend, should the positive momentum continue on to late in the day on Friday.
Failing to break through $7,600 to test the day’s second major resistance level could see Bitcoin investors lock in some gains, following last week’s losses, though barring any materially negative news on the regulatory front, Bitcoin should manage to avoid testing the day’s first major support level at $7,241.93.
The Bitcoin bulls are back and, while the immediate target will be the 23.6% FIB Retracement Level of $7,738, a move back through to $8,000 levels would spice things up, Bitcoin now having failed to break through to $8,000 for 7 consecutive days.
Elsewhere in the cryptomarket, Bitcoin Cash was up 4.02% to lead the way amongst the majors, while Ethereum, EOS, NEO, DASH and Stellar’s Lumen were up more than 3% at the time of writing.