Bitcoin – Bulls Steady the Ship, While Choppy Waters Lie Ahead

Bitcoin gained 0.52% on Friday, partially reversing Thursday’s 5.67% slide, to end the day at $6,284.5, with 3 consecutive days of losses mid-week leaving Bitcoin down 5.02% for the current week.

Tracking the broader cryptomarket, it was a relatively bullish start to the day, with Bitcoin rallying from a start of a day intraday low $6,220.3 to a mid-morning intraday high $6,353.4 before steadying, the moves through the early morning leaving the day’s major support and resistance levels untested.

A partial reversal through the afternoon saw Bitcoin ease back to sub-$6,300 levels by the day’s end, the pullback through the week reaffirming the extended bearish trend formed back at 5^th May’s swing hi $9,999.

For the Bitcoin bulls, the positive continues to be Bitcoin’s support levels that has seen sub-$6,000 levels avoided despite the negative sentiment sweeping across the broader market, with investors continuing to move cautiously in anticipation of announcements from the G20 and the SEC on pending rules and regulations for the broader market and decisions on Bitcoin ETF applications.

On the day, the news wires were on the quieter side, with the only major news being the release of the FSB report for the G20 that highlighted a need for monitoring of the cryptocurrency market, whilst noting that cryptocurrencies posed no immediate risk to financial stability.

For the broader cryptomarket, Friday saw a partial recovery of Thursday’s sell-off, leading to a rise in the total market cap back through to $200bn, while Bitcoin’s dominance held at 54%, having hit 55.05% on Friday morning, as some of the other crypto majors saw particularly heavy losses in Thursday sell-off.

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At the time of writing, Bitcoin was up 0.34% to $6,313.3, with Bitcoin recovering from a start of a day morning low $6,280.3 to a morning high $6,323.9 within the first hour of the day before easing back, the moves through the early morning leaving the day’s major support and resistance levels untested.

For the day ahead, holding on to $6,300 levels through the remainder of the morning would support a run at the day’s first major resistance level at $6,351.83, with any signs of a weekend rally across the broader market likely to bring $6,400 levels and the day’s second major resistance level at $6,419.17 into play before any easing.

Failure to hold on to $6,300 levels through the morning and take a run at the first major resistance level could see Bitcoin move back into the red later in the day, with a fall through $6,286 likely to bring the first major support level at $6,218.73 into play. We would expect Bitcoin to continue to avoid sub-$6,200 levels, barring particularly negative news hitting the wires, any pullback to $6,100 bringing sub-$6,000 levels into play, a move that would materially weigh on the broader market.

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This article was originally posted on FX Empire

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