Bitcoin Looking to Feed off from Gains Elsewhere for a Rebound
Bitcoin slipped a further 2.25% on Tuesday, adding to Monday’s 3.43% slide, to end the day at $7,874.8, fully reversing Sunday’s 4.41% rally.
While Bitcoin managed to hit $8,000 levels through the day, it was the first sub-$8,000 close since Friday, with investors likely to have been disappointed by the lack of a predicted rally on the day of the U.S tax deadline.
Your capital is at risk
Following a relatively subdued start to the day that saw Bitcoin hover around the $8,000 mark, a late morning rally took Bitcoin through to an intraday high $8,185 to break clear of the 23.6% FIB Retracement Level of $7,996.57.
The $8,185 high fell well short of the day’s first major resistance level of $8,357.57, leaving Bitcoin with a sideways move through the middle part of the day before pulling back to an intraday low $7,823, falling through the 23.6% FIB Retracement Level of $7,996.57, which had provided much needed support in the early part of the day, to test support at the day’s first major support level of $7,842.37.
Bitcoin’s finish at below the 23.6% FIB Retracement Level could signal an end to the near-term bullish trend formed back at 6th March’s swing lo $6,500.2, today’s moves key to Bitcoin’s week and sentiment towards the broader market.
A lack of a bullish rally late in the day to signal the passing of the U.S tax deadline will raise some questions over the cause of the 1st quarter slide, the payment of U.S taxes alone unlikely to have been the reason, though with talks of the Rothschilds and Soros now looking at the cryptomarket, there’s plenty of other fish in the sea to support a Bitcoin rebound.
Some positive chatter from IMF Head Lagarde on blockchain technology and cryptocurrencies in general was well received, supporting Bitcoin through the middle part of the day, though nothing new, with Lagarde unlikely to be of influence when regulators and governments finalize their plans for Crypto oversight.
At the time of writing, Bitcoin was up just 0.09% to $7,896.2, coming up short of $8,000 levels in the early part of the morning, with an intraday high $7,959.8.
The morning’s $7,870.5 low saw Bitcoin hold off from testing the day’s first major support level of $7,736.87, while calling on buy support as Bitcoin slid through the 23.6% FIB Retracement Level of $7,996.57.
With the sentiment across the broader market upbeat, in spite of Bitcoin’s slow start to the day, we would expect Bitcoin to move back through to $8,000 levels this morning and take a run at the day’s first major resistance level of $8,098.87.
Bitcoin could find increased demand through the latter part of the day should there be an influx in demand from the U.S, with regulator chatter having been on the quieter side of late, allowing the cryptos to recover some of the year’s losses.
Failure to test the first major resistance level could see a pullback to this morning’s lows, with market sentiment to dictate whether buyer appetite can hold Bitcoin above the day’s first major support level of $7,736.87 late in the day.
We will expect Bitcoin to catch up with the broader market, which should be a boost all-round.