Yahoo Finance Bitcoin – Is this the Bottom?
Bitcoin’s troubles continued on Wednesday with a 5.94% slide, off the back of Tuesday’s 4.85% fall, leaving Bitcoin down at $7,503.3 by the day’s end.
If investors had thought that it had turned particularly bearish last week, the 3 consecutive days in the red this week will be of particularly concern for the Bitcoin bulls.
While the first half of the day was relatively range bound, Bitcoin had already slipped through the day’s first major support level at $7,816.97 by mid-morning, before a mid-afternoon sell-off saw Bitcoin slide back through the day’s first major support level at $7,816.97 and second major support level at $7,647.63 to an intraday low and new swing lo $7,402.7, before recovering to $7,500 levels by the day’s end.
The moves through the day to the new swing lo $7,402.7 continued to reaffirm the bearish trend formed at 5th May’s swing hi $9,999, with the outlook continuing to look bearish, a reversal of this week’s losses needed to bring hopes of a bottoming out, Bitcoin down 25% from the swing hi $9,999.
Investors didn’t need any news updates to continue pulling out, with the harsh realities of what lies ahead on the regulatory front doing the damage, not only this month, but throughout the year.
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At the time of writing, Bitcoin was up 2.34% to $7,670.3, with an early bounce through to a morning high $7,729.8 partially reversing Wednesday’s losses.
Holding above the day’s first major support level at $7,264 was key early on, with Bitcoin moving on from a start of the day $7,494.8 low, the Bitcoin bulls looking to take back control.
For the day ahead, a break through the day’s first major resistance level at $7,881.3 would bring $8,000 levels and the 23.6% FIB Retracement Level of $8,015 into play, with sentiment across the broader market likely to dictate Bitcoin’s path on approach to $8,000 levels.
We would expect Bitcoin to face plenty of selling pressure at the 23.6% FIB Retracement Level, with the continued bearish sentiment towards the outlook on crypto regulatory oversight the ongoing negative for the cryptomarket.
Failure to break through the first major resistance level to test selling pressure at the 23.6% FIB Retracement Level could see an afternoon pullback to the $7,400 levels to bring the day’s first major support level at $7,264 into play. Sentiment will need to deteriorate through the day for sub-$7,000 levels to come into play, with investors now likely to be looking for the bottom to jump back in.
As always, the news wires are capable of playing a hand in the direction of Bitcoin and the broader market through the day, any negative news able to reverse the day’s gains with interest, leaving investors on a more cautious footing at present.
Elsewhere in the cryptomarket, Ripple’s XRP was up 4.17% at the time of writing, while Stellar’s Lumen led the way amongst the majors, rallying 5.69%, the usual suspects delivering the biggest gains to investors on the rebound.
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This article was originally posted on FX Empire
