Yahoo Finance Bitcoin Bulls Look to Take a Foothold Early
Bitcoin gained 3.44% on Sunday, following Saturday’s 0.31% fall, to end the week down 1.85% at $8,523.7.
A range bound start to the day that saw very little movement in Bitcoin that led to a pickup through the late morning to $8,300 levels, before an afternoon rally saw Bitcoin break through the day’s first major resistance level at $8,407.73 and the 23.6% FIB Retracement Level of $8,415 to an intraday high $8,597.9.
While easing back by the day’s end, Bitcoin managed to hold above the day’s first major resistance level and 23.6% FIB Retracement Level, raising the possibility of a bearish trend reversal in the week ahead, $8,500 levels having been the first target for the Bitcoin bulls.
There was no negative news across the wires over the weekend to affect investor sentiment, following the latest news out of South Korea that led to the recent falls, with the weekend’s moves ultimately bringing an end the negative sentiment that had seen Bitcoin in the red in 5 of the 7 days last week.
The ship may have steadied, but Bitcoin is going to need more than $8,500 levels to reverse the bearish trend, another decline more than likely should more regulatory news hit the wires in the coming weeks.
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At the time of writing, Bitcoin was up 0.07% to $8,530, recovering from a start of the day $8,432.1 low to move back through to $8,500 levels with an intraday high $8,550.
For the Bitcoin bulls, the good news was Bitcoin’s hold above the 23.6% FIB Retracement Level of $8,415, with the morning dip steering clear of the day’s first major support level at $8,263.5, Bitcoin looking to consolidate the gains through the latter part of last week.
For the day ahead, the next target for the Bitcoin bulls will be the 38.2% FIB Retracement Level of $8,717, with Bitcoin needing to break through the day’s first major resistance level at $8,689.9 to bring $8,700 levels into play.
The steady start to the day supports a positive move through the morning, with any break through to $8,700 likely to draw in investors on the side lines to bring into question the near-term bearish trend formed at 5th May’s swing hi $9,999.
Failure to move through to $8,600 levels to test the day’s first major resistance level could see Bitcoin give up Sunday’s gains, bringing into play the day’s first major support level at $8,263.5 and, should sentiment turn particularly negative, see Bitcoin test sub-$8,000 support levels.
The latter part of last week’s recovery saw Bitcoin avoid $7,000 levels through the weekend and for more of the same through the early part of the week, the news wires will need to be friendly and the bulls will need to support a run through to $8,600 levels early to return some confidence to the market.
Elsewhere, Ripple’s XRP was also in positive territory at the time of writing, up 0.3%, while NEO led the way, up 2.31%.
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This article was originally posted on FX Empire
