Bitcoin – Bulls in Dire Need of a Late Weekend Rally to Avoid sub-$5,000

Bitcoin fell by 0.48% on Saturday, following on from a 1.63% reversal on Friday, to end the day at $5,628.3, the day’s loss marking a 4^th consecutive day in the red to leave Bitcoin down 12.71% for the week, Monday through Saturday.

The day’s loss reflected a trend across the broader market, though for the Bitcoin bulls there was some respite from the recent reversals in the lead up to the Bitcoin Cash hard fork and the fallout that followed.

In spite of the minor losses on the day, the key driver for Bitcoin and the broader market remained the ongoing battle between Bitcoin Cash ABC and Bitcoin Cash SV, with the Bitcoin Cash SV miners fighting back after an early, post-hard fork Bitcoin Cash ABC lead.

With the hard fork having taken place on Thursday, it remains unclear on which will ultimately become the dominant chain, the direction of the markets seeming to reflect a calming over the possible negative effects of the hard fork and a possible Bitcoin Cash SV victory.

Bitcoin found support from a pickup in hash rates on the day, as Bitcoin Cash saw hash rates drop back, economics favouring Bitcoin mining over the mining of either Bitcoin Cash ABC or Bitcoin Cash SV.

Looking across the broader market, Ripple’s XRP held onto 2^nd place by market cap ranking on Saturday, with its 4.17% gain on Saturday outgunning Ethereum’s relatively flat day to widen the market cap gap to just shy of $2bn.

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At the time of writing, Bitcoin was up 0.92% to $5,680, a relatively bullish start to the day seeing Bitcoin move from a morning low $5,626.7 to a morning high $5,688.4 before easing back. The moves through the first part of the morning saw Bitcoin break through the day’s first major resistance level at $5,670.3 before easing back, resistance on the way through to $5,700 levels and the day’s second major resistance level at $5,712.3 too great early on in the day.

For the day ahead, holding above $5,670 through the morning would support a second run at $5,700 levels and the day’s second major resistance level at $5,712.3 later in the day, though for Bitcoin to have a chance of a breakout, hash rate support will be needed and Bitcoin Cash ABC will need to be garnering the majority of the Bitcoin Cash hash rate through the day.

Failure to hold above $5,670 through the morning could see Bitcoin hit reverse later in the day, with a pullback through the morning low $5,626.7 bringing $5,500 levels and the day’s first major support level at $5,577.7 into play before any recovery, the second major support level at $5,527.1 unlikely to be in play barring a surge in mining support for Bitcoin Cash SV later in the day.

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This article was originally posted on FX Empire

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