Yahoo Finance Bitcoin – Bulls Struggle to Break Out to $6,800
Bitcoin slipped by 0.28% on Wednesday, reversing Tuesday’s 0.18% gain, to end the day at $6,735.6.
Upward momentum from late Tuesday continued into the early hours of Wednesday, with Bitcoin breaking through the 23.6% FIB Retracement Level of $6,757 to strike a mid-morning intraday high $6,794 before hitting reverse, selling pressure at the 23.6% FIB continuing to weigh on Bitcoin.
Reversing through the late morning, Bitcoin fell to an intraday low $6,674.3, steering clear of the day’s first major support level at $6,662.27 to move back through to $6,700 levels, with Bitcoin failing to break back through the 23.6% FIB, an early afternoon high $6,760 seeing selling pressure pin Bitcoin back for a second time, the only good news for the bulls being Bitcoin’s hold on to $6,700 levels by the day’s end.
On the news wires, there was no particularly negative news to pin the majors back on the day, with the lack of volatility continuing to reflect the lack of direction attributed to the SEC’s pending decisions on the 9 Bitcoin ETF applications that will be announced next month.
Of greater significance may ultimately be the G20’s planned rollout of unified rules and regulations that are due to be announced this month, though there has been very little chatter on the subject since the FSB released its findings on cryptocurrencies earlier in the month.
Price manipulation remains the key and, for the SEC to be able to freely approve the vehicles that will lead to a much needed inflow of institutional money into Bitcoin, governments and regulators will need to introduce measures to remove the effects of price manipulation through the elimination of certain trading practices.
Get Into Cryptocurrency Trading Today
At the time of writing, Bitcoin was up just 0.06% to $6,740.3, an early move from a morning low $6,723 to a morning high $6,779.9 seeing Bitcoin break through the 23.6% FIB Retracement Level of $6,757 only to pullback through the 23.6% FIB, with Bitcoin unable to break out to test the day’s first major resistance level at $6,794.97.
For the day ahead, a move back through the 23.6% FIB Retracement Level of $6,757 to the morning high $6,779.9 would support a second run at the day’s first major resistance level at $6,794.97 to bring $6,800 levels into play, while we would expect Bitcoin to fall short of the second major resistance level at $6,854.33, barring particularly positive news hitting the wires.
Failure to break back through the 23.6% FIB could see Bitcoin pullback through $6,735 to the morning low $6,723, bringing sub-$6,700 levels and the day’s first major support level at $6,675.27 into play before any recovery. We would expect Bitcoin to avoid heavier losses in the event of a pullback, barring a material news event, with low vol and the 23.6% FIB Retracement Level pinning Bitcoin to within some relatively tight ranges.
This article was originally posted on FX Empire
