Yahoo Finance Bitcoin – Bears in Control as Investors Look Towards the EU Crypto Review
Bitcoin fell by 2.93% on Thursday, following on from Wednesday’s 8.81% slide, to end the day at $6,507.6.
Wednesday’s sell-off continued into Thursday, with Bitcoin following the broader market deep into the red at the start of the day, Bitcoin falling through the day’s first major support level at $6,472.47 to an intraday low $6,302.2 before rallying back to an intraday high $6,731.3 that fell well short of the first major resistance level at $7,176.47.
A pullback through the morning saw Bitcoin slide back through the day’s first major support level to a late morning $6,303 before recovering through the afternoon to $6,500 levels by the day’s end.
For the Bitcoin bulls, the positive would have been to break back through the day’s first major support level by the day’s end, though there were plenty of negatives, of particular concern being Bitcoin’s inability to keep up with the broader market, with most of the majors making solid gains on the day.
Support late in the day came off the back of news hitting the wires of a potential Bitcoin ETF application that may find a more accepting SEC though there’s more than just Bitcoin ETFs for investors to consider at the moment, regulators and government officials continuing to take a close look at the market.
The middle of the week reversal that left Bitcoin trailing the broader market on Thursday did little to dent Bitcoin’s dominance, which hit 55% levels before easing back to 54.1% at the time of writing, the uptick supporting the bearish sentiment seen across the broader market.
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At the time of writing, Bitcoin was down 0.29% to $6,496.9 in what’s been a relatively range bound start to the day, Bitcoin recovering from a start of a day morning low $6,468.8 to an early morning high $6,544 before easing back to sub-$6,500 levels, the moves through the early morning leaving the day’s major support and resistance levels untested.
For the day ahead, a move back through $6,500 to the morning high $6,544 would support a run at $6,600 levels to bring the day’s first major resistance level at $6,725.2, though we would expect Bitcoin to fall short of $6,700 levels on the day, with resistance likely to pin Bitcoin back from a move through to $6,600 levels, barring particularly crypto friendly news hitting the wires.
Failure to move back through to $6,500 levels through the morning could see Bitcoin take a bigger hit in the day, with a pullback through the morning low $6,468.8 bringing $6,300 levels and the day’s first major support level at $6,296.1 into play, heavier losses unlikely barring materially negative news hitting the wires.
For the Bitcoin bulls, the threat of a return to sub-$6,000 levels is significant, particularly when considering the planned review of ICOs and the Cryptomarket at next week’s EU finance ministers’ meeting, which could deliver a blow to the broader market ahead of the planned roll out of unified rules and regulations by the G20.
This article was originally posted on FX Empire