Bitcoin – $7,300 the Line in the Sand for the Bulls

Bitcoin slipped by just 0.47% on Monday, partially reversing Sunday’s 1.43% gain, to end the day at $7,265.7, the trend of Monday losses resuming after having managed to kick off the previous week on the front foot.

In line with the broader market, Bitcoin slipped from a start of a day morning high $7,324.8 to an early morning intraday low $7,200 before finding support, the early reversal seeing Bitcoin steer clear of the day’s first major support level at $7,147.27.

Support through the late morning and early afternoon led Bitcoin through to an intraday high $7,369, the day’s high coming within reach of the 38.2% FIB Retracement Level of $7,376 before pulling back.

Selling pressure at the 38.2% FIB Retracement Level continues to pin Bitcoin back from more material gains, with a late in the day reversal seeing Bitcoin slide back to $7,200 levels to leave the extended bearish trend intact.

The lack of a major move through the day left the broader market on the defensive, in spite of the news wires being relatively quiet on the regulatory front, investors locking in profits at the start of the week in anticipation of more regulatory chatter through the month.

While the news wires were on the quieter side, the latest CFTC Commodity of Traders report showed that there was a reversal in the previous week’s rise in long positions, with long positions falling from 2,160 to 1,974, to give the bears a stronger grip, short positions rising from 3,426 to 3,446 according to the latest available report released on 31^st August for data as at 28^th August.

We can expect Bitcoin and the broader market to respond to the month end numbers once released, with any bounce back in the longs supporting another run at the 38.2% FIB Retracement Level of $7,376 and the beginnings of a near-term bullish trend.

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At the time of writing, Bitcoin was up 0.21% to $7,282.7, with Bitcoin recovering from a dip to a morning low $7,255.4 to strike a morning high $7,298.5 before easing back, with resistance at $7,300 continuing to be a hurdle for the Bitcoin bulls following Monday’s moves.

While failing to break back through to $7,300 levels, leaving the day’s first major resistance level at $7,356.47 untested, the morning low also saw Bitcoin steer clear of the day’s first major support level at $7,187.47.

For the day ahead, holding above $7,278.23 would support another run at $7,300 levels to bring the day’s first major resistance level at $7,356.47 and the 38.2% FIB Retracement Level of $7,376 into play, though for Bitcoin to break out from the first major resistance level, the release of Friday’s CFTC long and short positions will need to be favourable.

Failure to hold above $7,278.23 through the morning could see Bitcoin hit reverse later in the day, with a pullback through the morning low $7,255.4 bringing sub-$7,200 levels and the day’s first major support level at $7,187.47 into play, with a further slide on the cards should short positions rise further, which could see Bitcoin test the day’s second major support level at $7,109.23 before any recovery.

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This article was originally posted on FX Empire

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