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Bitcoin – Early Support Brings $6,700 into Play for the Bulls

Bitcoin gained just 0.05% on Sunday, following a 0.93% rise on Saturday, to end the day at $6,590.1. Gains through the weekend brought to an end 3 consecutive days of losses to leave Bitcoin up 4% for the week, the upside coming from Monday’s 6.3% rally.

A relatively choppy day saw Bitcoin hit an early morning intraday high $6,660.8, breaking through the first major resistance level at $6,627.13 to come up against the second major resistance level at $6,669.08 to ease back from a run at $6,700 levels.

Range bound through mid-morning, Bitcoin broke back through the first major resistance level at $6,627.13 in the late morning and early afternoon, an early afternoon $6,655.2 the last bullish move of the day, with a broad based market sell-off leading Bitcoin to a late in the day intraday low $6,581.2.

For the Bitcoin bulls, the only good news was Bitcoin’s hold above the day’s first major support level at $6,527.13, while Bitcoin’s struggles to hold on to $6,600 levels continued in spite of the early tests of the day’s major resistance levels.

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There were no material news releases through the day to provide Bitcoin and the broader market with direction, Bitcoin’s failure to breakout from the day’s first major resistance level a likely contributor to the second half of the day’s reversal to sub-$6,600 levels.

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At the time of writing, Bitcoin was up 0.48% to $6,622.6, with Bitcoin seeing a choppier start to the day than normal this morning.

Spilling over from Sunday’s afternoon reversal, Bitcoin fell to a start of a day morning low $6,561.1 to come within range of the day’s first major support level at $6,560.6 before bouncing back to a morning high $6,623, Bitcoin falling short of the first major resistance level at $6,640.2, whilst managing to break back through to $6,600 levels and hold.

For the day ahead, holding above $6,610 through the morning would support a run at the day’s first major resistance level at $6,640.2 to bring the day’s second major resistance level at $6,690 and $6,700 levels into play, though for Bitcoin to break out from its current ranges, there’s going to need to be a material shift in sentiment, possibly driven by the news wires to fuel a break out.

Failure to hold above $6,610 through the morning could see Bitcoin hit reverse later in the day, a pullback to $6,500 levels likely to bring the day’s first major support level at $6,560.6 into play. A broad based market sell-off would bring the second major support level at $6,531 into play before any recovery, Bitcoin unlikely to test sub-$6,500 support levels baring materially negative news hitting the wires.

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This article was originally posted on FX Empire

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