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Bitcoin – In Desperate Need of a Weekend Rally

Bitcoin fell by 3.85% on Friday, partially reversing Thursday’s 5.38% gain, to end the week down 5.61% to $6,378.6.

Following a late in the day rally on Thursday, Bitcoin saw a pullback through the early part of the day on Friday, falling through to a morning low $6,450 following a trend bucking, late morning intraday high $6,659.

In spite of the attempts at a run at the day’s first major resistance level at $6,823.63, the bearish trend continued through the day, with Bitcoin falling through the day’s first major support level at $6,356.63 to a late intraday low $6300.2, before moving back through the day’s first major support level to the day’s ending $6,378.6.

Falling well short of the 23.6% FIB Retracement Level of $7,026 and failing to test the day’s first major resistance level at $6,356.63 continued to support the extended bearish trend formed at early May’s swing hi $9,999, with Bitcoin now having failed to hit $7,000 levels for a 5th consecutive day.

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There was no particularly negative news to hit the wires through the day to bring about the reversal, with investors continuing to lock in profits in fear of another sell-off, which has continued to drive volatility across Bitcoin and the broader market.

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At the time of writing, Bitcoin was up 0.63% to $6,425, in what’s been a relatively range bound start to the day, Bitcoin rising to a morning $6,457.3 high off the back of a start of the day $6,378.6 low, the moves through the early hours leaving the day’s first major support level at $6,232.87 and first major resistance level at $6,591.67 untested.

For the day ahead, a move back through $6,445.93 would support a run at the day’s first major resistance level at $6,591.67, though for the Bitcoin bulls, breaking through the first major resistance level won’t be enough to begin reversing the extended bearish trend, the first target of $7,000 and the 23.6% FIB Retracement Level of $7,026 some way off when considering current sentiment across the cryptomarket.

Failure to move back through $6,445.93 could see Bitcoin take another hit through the day, with the day’s first major support level at $6,232.87 very much in play should the Bitcoin bulls not be able to make a move through the morning. As was the case on Friday, range bound moves through bearish trends tend to lead to pullbacks and, when considering the fact that Bitcoin’s losses through the week were mild relative to its peers, the Bitcoin bears could play catch up later in the day.

Elsewhere in the cryptomarket, it was a mixed start to the day, with Ripple’s XRP, NEO and Stellar’s Lumen bucking the trend in the early hours, the trio seeing red, while Ethereum and DASH had a solid start to the weekend, with gains of 1.65% and 1.61% respectively to lead the way amongst the majors.

BTC/USD 16/06/18 4-Hourly Chart
BTC/USD 16/06/18 4-Hourly Chart

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This article was originally posted on FX Empire

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