Yahoo Finance Bitcoin – $8,000 Needs to Come or it’s Back to Sub-$7,000
Bitcoin gained 0.42% on Wednesday, following Tuesday’s 1.9% rise, to end the day at $7,653.9.
It was a relatively range bound morning, with Bitcoin hovering at around the 23.6% FIB Retracement Level of $7,605, a morning high $7,698 and low $7,566.1 steering clear of the day’s first major resistance level at $7,746.6 and support level at $7,443.6.
An early afternoon broad based market sell-off saw Bitcoin slide through the 23.6% FIB Retracement Level of $7,605 to an intraday low $7,491.7, with support kicking in at $7,500 levels to hold Bitcoin clear of the day’s first major support level at $7,443.6 through the day.
Bitcoin’s move back through the 23.6% FIB Retracement Level to an intraday high $7,700 late in the day was key for the Bitcoin bulls and continued to support the near-term bullish trend formed at late May’s swing lo $7,040, though Bitcoin will need to break back through to $8,000 levels sooner rather than later to avoid a reversal to sub-$7,000 levels.
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At the time of writing, Bitcoin was up 0.53% to $7,694.3, with an early move seeing Bitcoin hit an intraday high $7,756.3 before pulling back to $7,600 levels, resistance at the day’s first major resistance level at $7,738.7 too great to allow a break out to $7,800 levels in the early hours.
The morning’s $7,674 low held well above the day’s first major support level at $7,530.4 and more importantly the 23.6% FIB Retracement Level of $7,605, to continue supporting the near-term bullish trend, though the Bitcoin bulls may begin to lose their grip should there not be a meaningful move in the coming days.
$7,700 levels continues to be a key for Bitcoin, with Bitcoin having struggled to end the day at $7,700 levels since Sunday.
For the day ahead, a move back through the morning’s high would bring the second major resistance level at $7,823.5 into play and more importantly $8,000 levels. Sentiment across the broader market will need to get a boost for investors to hold on to support a more sustained rally, a continued failure to move through to $8,000 levels keeping the risk of a pullback to sub-$7,000 levels alive in the near-term.
Failure to move back through the morning’s high to $7,800 levels will likely see Bitcoin pullback to the 23.6% FIB Retracement Level of $7,605 to bring the day’s first major support level at $7,530.4 into play, such a move questioning the near-term bullish trend and likely to lead to a resumption of the extended bearish trend formed at 5th May’ swing hi $9,999 that Bitcoin has failed to get near to since.
Investor are certainly tiptoeing, but for now the good news for the Bitcoin bulls is that there has been plenty of support.
Elsewhere in the cryptomarket, Litecoin was down 0.03% at the time of writing, with Cardano’s ADA and Ethereum also on the red, while NEM’s XEM led the way, up 3.38%, Monero a distant second with a 1.5% rise through the morning.
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This article was originally posted on FX Empire
