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Bitcoin – Bulls Look for a Weekend Rally and $7,000 Levels

Bitcoin rose by 4.2% on Friday, following a 1.75% gain on Thursday, to end the day at $6,766.4, with 4 consecutive days in positive territory giving Bitcoin a 4.1% rise for the week.

Tracking the broader market through the early part of the day, Bitcoin rallied to a morning high $6,775, breaking through the first major resistance level at $6,612.53 and second major resistance level at $6,720.27 to test selling pressure at the 23.6% FIB Retracement Level of $6,757 before easing back to sub-$6,700 levels.

A late in the day rally saw Bitcoin break back through the 23.6% FIB Retracement Level of $6,757 to an intraday high $6,790.5 before easing back, Bitcoin managing to hold above the 23.6% FIB by the day’s end.

In spite of the week’s gains, the extended bearish trend formed at early May’s swing hi $9,999 remained intact, with Bitcoin needing to break through the 38.2% FIB Retracement level of $7,376 to begin forming a bearish trend reversal.

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The vast majority of the support going into the weekend came from renewed interest in the cryptomarket following Ripple’s XRP rally that came off the back of news that a Saudi and U.S bank will be adopting Ripple’s platforms for cross-border transactions.

On the Bitcoin side, hopes of the SEC finally approving a Bitcoin ETF also provided much needed support, with the SEC currently collecting comments on various questions the SEC has before concluding its review that could drag into early next year, price manipulation likely to remain the main area of focus.

With SEC Commissioner Peirce an advocate of Bitcoin and the broader market, the upward momentum is expected to continue, though there is one possible storm that investors will need to navigate through, the planned roll out of unified crypto rules and regs next month.

The upward trend across the broader market through the week has seen the total crypto market cap recover to $224.37bn at the time of writing, with Bitcoin’s dominance falling back from a recent high 57.95% to 52.2%, as Ripple’s XRP takes a run at Ethereum and a return to a number 2 ranking.

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At the time of writing, Bitcoin was down 0.17% to $6,750.5, with Bitcoin pulling back from a start of a day morning high $6,840.9 to a morning low $6,725.4 before recovering, the moves through the early morning leaving the major support and resistance levels untested, while selling pressure at the 23.6% FIB Retracement Level of $6,757 weighed early on.

For the day ahead, holding on to $6,700 levels through the morning would support a run at the morning high $6,840.9 to bring the day’s first major resistance level at $6,880 into play, though a move would need to come in the late morning for an afternoon rally to kick in, the Bitcoin bulls now eyeing $7,000 levels.

Failure to move back through to $6,800 levels could see Bitcoin give up some of Friday’s gains, with a pullback through the morning low $6,725.4 bringing $6,600 levels into play, the day’s first major support level at $6,563.3 unlikely to be tested barring materially negative news hitting the wires.

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This article was originally posted on FX Empire

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