Yahoo Finance Bitcoin – The Narrow Ranges Could Come Back to Bite the Bulls
Bitcoin gained 0.98% on Wednesday, partially reversing Tuesday’s 2.97% fall, to end the day at $6,133.1.
An end of day pullback on Tuesday continued into Wednesday, leading Bitcoin to a morning low $6,026 before support kicked in to take Bitcoin back to $6,100 levels through the morning.
A second pullback in the early afternoon saw Bitcoin slide to an intraday low $5,984.9 to test support at the day’s first major support at $5,982.33 before recovering, with Bitcoin hitting an intraday high $6,192.7 before easing at the end of the day.
In spite of the upside through the day, Bitcoin lagged the majors, with the continued failure to break through major resistance levels and 23.6% FIB Resistance Level at $6,874 leaving the extended bearish trend intact, talks of Bitcoin rallying to record highs having become few and far between amongst the crypto bulls of late.
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At the time of writing, Bitcoin was down 0.3% to $6,114.4, in what’s been a relatively range bound start to the day following the choppiness through the first half of the week.
A start of the day $6,170.9 high fell short of the first major resistance level at $6,222.23 and well short of the 23.6% FIB Retracement Level of $6,874, with Bitcoin pulling back to a morning low $6,072.7 that held above the day’s first major support level at $6,014.43 before recovering to $6,100 levels.
For the Bitcoin bulls, the good news early on is the support at current levels that has held Bitcoin from a fall back through to sub-$6,000 levels, though should sentiment continue to remain negative through the day, things could change.
For the day ahead, a move back through the morning’s high $6,170.9 would support a run at the first major resistance level at $6,192.7. As was the case on Wednesday however, we would to expect resistance at $6,200 to have built up further to pin Bitcoin back from more material gains. Barring a broad based market rally that certainly looks off the table for now, any daily gains are likely to lead to reversals as investors lock in profits in search of the next dip.
Failure for Bitcoin to move back through the morning’s high could see Bitcoin test the day’s first major support level at $6,014.43, with sentiment across the broader market to dictate whether a pullback to sub-$6,000 levels is likely, the near-term floor at $5,908.1 safe for now, but not too far off in the event of another market sell-off that could come at any moment should negative news hit the wires.
Elsewhere, Monero and Stellar’s Lumen bucked the trend through the morning, with gains of 1.43% and 0.1% respectively, while DASH saw the heaviest losses, down 4.01% at the time of writing, with Litecoin and Ripple’s XRP seeing more than 2% losses to eat into Wednesday’s partial recoveries.
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This article was originally posted on FX Empire
