Yahoo Finance Bitcoin – Bulls Need $6,600 Levels or Face a Retreat to sub-$6,300
Bitcoin rose by 0.3% on Wednesday, partially reversing Tuesday’s 2.15% slide, to end the day at $6,462.3.
A start of the day reversal saw Bitcoin pullback to an early morning intraday low $6,382.5, steering clear of the first major support level at $6,318.23, to move through to $6,500 levels by late morning and an early afternoon intraday high $6,558 that came up short of the day’s first major resistance level at $6,576.33.
Unable to hold on to $6,500 levels for a 2nd consecutive day, Bitcoin pulled back late in the day to $6,400 levels, with sub-$6,400 support propping Bitcoin up from another drop to $6,300 levels, the late reversal seeing Bitcoin fall to a second half of a day low $6,429 before recovering.
For the Bitcoin bulls, a move back through to $6,500 levels will have been the positive, providing some support to the more bullish views that Bitcoin has bottomed out, though with plenty of resistance pinning Bitcoin back from a breakout to $7,000 levels, investor patience could be tested down the road, particularly with uncertainty over the SEC’s ruling on the VanEk Bitcoin ETF and the much talked about and anticipated shift in the cryptomarket’s regulatory landscape.
With a number of the crypto majors making gains on Wednesday, Bitcoin Cash rallying more than 15%, Bitcoin’s dominance eased back to 52% at the time of writing, though things could have been worse if support hadn’t kicked in for Bitcoin in the late morning.
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At the time of writing, Bitcoin was up 0.37% to $6,486.4, a start of a day rally seeing Bitcoin move back through to $6,500 levels, with a morning high $6,528.4 before easing back, the high coming within range of the day’s first major resistance level at $6,552.7 to leave Bitcoin trailing Bitcoin Cash and a number of the other majors.
For the day ahead, a move back through to $6,500 levels would likely see Bitcoin take another run at the first major resistance level at $6,552.7 to bring $6,600 levels into play, though Bitcoin will need to hold above $6,470 through the morning to support an afternoon rally. Resistance at $6,500 has continued to pin Bitcoin back from a run at $6,700 levels to bring the 23.6% FIB Retracement Level of $6,757 into play, leaving the Bitcoin bears in control in spite of the early upside.
Failure to hold above $6,470 through the morning could see Bitcoin take a hit later in the day, with a reversal likely to see Bitcoin fall through to $6,300 levels to bring the day’s first major support level at $6,377.2 into play, the second major support level at $6,292.1 unlikely to be tested barring materially negative news hitting the wires.
The rallies in Ripple’s XRP and Bitcoin Cash have certainly distracted the markets from the possible risks down the track, with new rules and regulations for the cryptomarkets due out in October remaining the key risk to Bitcoin and the broader market near-term, which could return to focus as September and the 3rd quarter comes to a rapid end.
This article was originally posted on FX Empire
