Bitcoin – Volatility Slides as the Bulls Go in Search $6,800

Bitcoin gained 0.18% on Tuesday, following Monday’s 6.32% rally, to end the day at $6,754.2.

It was back to the tight ranges for Bitcoin, following the USDT price action on Monday, with volatility sliding back to the lower levels that the markets have recently become accustomed to.

An early move through to an intraday high $6,897.6 saw Bitcoin fall well short of the day’s first major resistance level at $7,585.07, whilst testing selling pressure at the 23.6% FIB Retracement Level of $6,757, which ultimately weighed.

Reversing from the mid-morning intraday high, Bitcoin fell to a late afternoon intraday high $6,688, pulling back through the 23.6% FIB Retracement Level of $6,757, whilst holding well above the day’s first major support level at $6,091.67.

For the Bitcoin bulls, holding on to Monday’s gains was the positive of the day, whilst Bitcoin’s continued failure to break free from the 23.6% FIB Retracement Level reflected investor angst, as the markets wait on for the SEC decision on the Bitcoin ETFs and the anticipated cryptomarket rules and regulations from the G20.

On the news front, there was no major news to influence the cryptomarket through the day, though one does wonder whether news of the White House raising concerns over China’s dominance and hold over Bitcoin will influence the SEC’s decision on the 9 Bitcoin ETF applications.

We’ve seen the U.S President attempt to influence the FED, while arguably having influenced OPEC, so one must consider influencing the SEC’s ETF decision are far simpler task should the need arise. There’s been no price action in response to the news hitting the wires, though should there be any chatter from the Oval Office and tweets from the U.S President, some downside would be expected.

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At the time of writing, Bitcoin was up 0.14% to $6,763.4, with Bitcoin recovering from a start of a day morning low $6,737 to move through the 23.6% FIB Retracement Level of $6,757, whilst leaving the day’s major support and resistance levels untested.

For the day ahead, a move through $6,780 would support a run through to $6,800 levels to bring the day’s first major resistance level at $6,871.87 into play, though Bitcoin would need to move through $6,780 by the early afternoon to support a rally, while we would expect Bitcoin to fall short of $6,900 levels on the day, barring particularly positive news hitting the wires.

Failure to move through $6,780 could see Bitcoin hit reverse later in the day, with a pullback through the morning low $6,737 bringing sub-$6,700 levels and the day’s first major support level at $6,662.27 into play, while we would expect Bitcoin to steer clear of sub-$6,600 levels and the day’s second major support level at $6,570.44.

For the Bitcoin bulls, a move through to $6,800 levels and hold by the day’s end would be needed to avoid a reversal of some of Monday’s gains later in the week, support currently coming from some particularly bullish Bitcoin price forecasts hitting the news wires.

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This article was originally posted on FX Empire

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