Yahoo Finance Bitcoin – Can a Weekend Rally Deliver $7,000?
Bitcoin gained 1.18% on Friday, reversing Thursday’s 0.89% fall, to end the day at $6,609.5, with the day’s gain seeing Bitcoin rise by 4.1% for the current week.
After a relatively range bound start to the day, Bitcoin pulled back to a mid-morning intraday low $6,451.9 before recovering to $6,500 levels through the middle of the day, the day’s low holding above the first major support level at $6,401.43.
Upward momentum through the 2nd half of the day saw Bitcoin move through to an intraday high $6,641.8 before easing back slightly by the day’s end, Bitcoin falling short of the day’s first major resistance level at $6,682.37.
Of greater significance was Bitcoin failing to break back through to $6,700 levels for the first time since Wednesday’s $6,675.2 high, leaving Bitcoin short of the 23.6% FIB Retracement Level of $6,757 for a 2nd consecutive day.
While there was no materially negative news to hurt Bitcoin through the 2nd half of the week, the extended bearish trend, formed at 5th May’s swing hi $9,999, continues to pin Bitcoin back from any sustainable rally needed to begin forming a near-term bullish trend.
The good news for the Bitcoin bulls will be that Bitcoin is on for a 2nd week of gains, though by Bitcoin standards, the gains are far from news worthy, with Bitcoin showing few signs of a possible break out from the 23.6% FIB Retracement Level of $6,767 to $7,000 levels in the near-term, in spite of Bitcoin having recovered well from 24th June’s swing lo $5,755.
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At the time of writing, Bitcoin was down just 0.03% to $6,600, with Bitcoin managing to recover from an early pullback to a morning low $6,563.3 that held above the day’s first major support level at $6,493.67 before recovering back through to $6,600 levels, with a morning high $6,623.9.
For the day ahead, Bitcoin will need to move through the morning’s $6,623.9 high to bring the day’s first major resistance level at $6,683.57 into play, while Bitcoin will need the momentum of a weekend rally to break out from the 23.6% FIB Retracement Level of $6,757 and the day’s second major resistance level at $6,757.57 to bring $7,000 levels back into play.
Failure to move back through the morning’s high could see Bitcoin pullback to test sub-$6,500 support levels, with Bitcoin needing to hold on to $6,500 levels through the day to avoid a more material pullback to bring the day’s second major support level at $6,377.83 into play.
Bitcoin last broke into $7,000 levels on 11th June, with attempts through June to reverse the extended bearish trend having been thwarted to-date. It’s not just sentiment that will need to shift, but governments and regulators will need to roll out particularly favourable new cryptomarket regulations to bring forward the prospects of a return to $10,000 levels, the uncertainty of what lies ahead continuing to be a drag on Bitcoin and the broader market.
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This article was originally posted on FX Empire
