Bitcoin Poised to Make a Move, the Bulls in Search of $8,500

Bitcoin gained 2.34% on Friday, partially reversing Thursday’s 3.37% fall, to end the week down 2.69% at $8,243.4.

It was a particularly choppy day for Bitcoin, which had endured 4 consecutive days of losses ahead of Friday’s open, with a start of the day intraday low and new swing lo $7,925 certainly not helping the cause.

In spite of the early tumble, holding above the day’s first major support level at $7,864.27 led to a break back through to $8,000 levels, with a 2^nd rally through the afternoon seeing Bitcoin hit an intraday high $8,277.2 before a slight easing back through to the day’s ending $8,243.4.

The new swing lo and failure to test the day’s first major resistance level to have a run at the 23.6% FIB Retracement Level of $8,415 affirmed the near-term bearish trend formed at 5^th May’s swing hi $9,999, the bears continuing to run the show in spite of Friday’s gains.

Good news for the Bitcoin bulls will be Bitcoin’s resilience through the bearish week however, the losses minor relative to its peers, with Bitcoin recovering some lost ground over crypto rival Bitcoin Cash.

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At the time of writing, Bitcoin was down 0.27% to $8,216.8, with Bitcoin managing to recover from an early morning dip to an intraday low $8,164.1.

With support and resistance levels left untested on Friday, the morning’s low held above the day’s first major support level at $8,019.87, with the morning’s $8,277.8 falling short of the day’s first major resistance level at $8,372.07, in what could be yet another day where Bitcoin fails to test major resistance levels, Bitcoin having last tested major resistance levels on Monday.

For the day ahead, Bitcoin will need to move back through to $8,250 levels to support a run at $8,300 levels to bring the day’s first major resistance level at $8,372.07 into play, though the bulls will need to take control for Bitcoin to break through to $8,300 levels

Failure to move through the morning’s $8,277.8 high to $8,300 levels will likely lead to another slide to reverse Friday’s gains, with the day’s first major support level at $8,019.87 a certain target for the Bitcoin bears, Bitcoin having managed to avoid closing at sub-$8,000 levels since 18^th April.

For the bulls, a shift away from Friday’s start of the day swing lo $7,925 should provide some support, while side lined investors find little cause to jump back in, a roll out of regulations in key jurisdictions expected at any time.

Current levels may look attractive, but when considering Bitcoin’s 2018 sub-$6,000 low that came off the back of heightened regulatory risk, there could more red to come in the coming weeks before the dust settles and the bulls take control.

Elsewhere, Bitcoin Cash continued to slide, down 2.32% at the time of writing, with NEM’s XEM, Stellar’s Lumen and Monero also seeing notable losses, while DASH and NEO were one of a few to buck the trend, up 0.64% and 0.09% respectively in the early hours.

BTC/USD 19/05/18 Hourly Chart

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This article was originally posted on FX Empire

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