Bitcoin Bulls Battle it Out, But New Swing Los Don’t Help the Cause

Bitcoin took another hit on Thursday, falling 3.37% following Wednesday’s 1.47% fall, to end the day at $8,055.

An early morning intraday high $8,482.2 fell short of the day’s first major resistance level at $8,524.53 and the 23.6% FIB Retracement Level of $8,548, leading to a pullback through the morning to $8,190.4 to hold above the day’s first major support level at $8,131.83. The Bitcoin bulls lost the battle for another day, with Bitcoin sliding through the day’s first major support level at $8,131.83 to an intraday low and new swing lo $7,982.5 in the afternoon, before recovering to $8,000 levels by the day’s end.

While holding above the day’s second major support level of $7,919.57 was a positive, the new swing lo affirmed the near-term bearish trend formed at 5^th May’s swing hi $9,999 to leave the Bitcoin bears in control, Bitcoin falling to sub-$8,000 levels for the first time since 19^th April.

In spite of the losses this year and the resumption of the bearish trend since early May’s failed attempt at $10,000, there’s still plenty of talk of Bitcoin recovering to all-time highs and more, though clarity on crypto regulations will be key to support such a move, the unknown unnerving investors over the last week and likely to continue to overshadow any platform developments.

Get Into Cryptocurrency Trading Today

At the time of writing, Bitcoin was down 0.38% to $8,024 in what’s been another choppy start to the day, Bitcoin falling to a start of the day new swing lo $7,925 before recovering to $8,000 levels.

Negative sentiment across the market has left Bitcoin facing plenty of resistance at $8,000, with a morning $8,063 high all on offer for the Bitcoin bulls early on.

For the day ahead, Bitcoin will need to move through to $8,150 levels to have a run at the day’s first major resistance level at $8,363.97, though for Bitcoin to test the waters at the 23.6% FIB Retracement Level of $8,458, sentiment will need to improve through the middle part of the day, the morning’s new swing lo likely to test investor resilience ahead of the weekend.

Failure to break back through to $8,150 levels to test the first major resistance level could leave Bitcoin investors in more pain later in the day, with any test of the day’s first major support level at $7,864.27 likely to bring the day’s second major support level at $7,673.53 into play.

Investors will be looking for an entry point at current levels, but with heightened volatility and new swing los this week, a relief rally will likely be a step too far going into the weekend, though it wouldn’t be completely out of the question, with Bitcoin down just 7.24% for the current week, Monday through Thursday.

Elsewhere, Ripple’s XRP and NEO are amongst the front runners, with gains of 1.28% and 1.11% respectively, while DASH and Cardano’s ADA were amongst the worst performers, down 1.55% and 1.90% respectively, the pair likely to need a Bitcoin bounce back to support a recovery later in the day.

BTC/USD 18/05/18 Hourly Chart

Buy & Sell Cryptocurrency Instantly

This article was originally posted on FX Empire

More From FXEMPIRE:

• Natural Gas Price Fundamental Daily Forecast – Bullish Traders Betting Supply Gap Won’t Be Filled

• Bitcoin Cash, Litecoin and Ripple Daily Analysis – 18/05/18

• Wal-Mart Stores Inc (NYSE:WMT)’s Q1 Results Beat Estimates As Online Sales Improve

• NEM’s XEM Technical Analysis –Support, Support, Support – 18/05/18

• EUR/USD, AUD/USD, GBP/USD and USD/JPY Daily Outlook – May 18, 2018

• Price of Gold Fundamental Daily Forecast – Rising Rates, Euro Worries and Trade War Concerns are Today’s Market Drivers