Bitcoin in Search of $6,000, Though the Worse Has Yet to Come

Bitcoin fell by 4.45% on Thursday, following Wednesday’s lacklustre 0.98% gain, to end the day at $5,860.3, Bitcoin recording a first sub-$6,000 days’ end since prior to the late 2017 rally to the all-time high $19,891.

In contrast to the broader market, Bitcoin had yet another relatively range bound first half of the day, with a start of the day $6,170.9 high falling short of the first major resistance level at $6,222.23 and Bitcoin managing to hold well above the first major support level at $6,014.43 through to the late afternoon.

The range bound moves in recent days ultimately gave way, with Bitcoin taking a late in the day slide through the day’s first major support level at $6,014.43 to an intraday low $5,822.3 before a partial recovery in the final hour.

While Bitcoin may have seen less material losses on the day than many of its peers, the late pullback was a reminder that Bitcoin is no longer the barometer for the broader market, with Bitcoin ultimately playing catch up in the late evening.

There was no particularly bad news to drive the markets south late in the week, the current sell-off / recovery rally trend proving hard to shake off for investors, who continue to tread carefully through the summer in anticipation of global regs due to be rolled out in July.

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At the time of writing, Bitcoin was up 0.67% to $5,887 in what’s been another range bound start to the day, Bitcoin seeing a brief pull back to a morning low $5,780 before recovering to $5,800 levels, the morning’s low steering clear of the first major support level at $5,731.43.

A morning high $5,960 also saw Bitcoin come up short of the day’s first major resistance level at $6,080.03, with another range bound start to the day likely to test the resilience of the more bullish Bitcoin investor.

For the day ahead, a move back through the morning’s $5,960 high would support a run at $6,000 levels and the day’s first major resistance level at $6,080.03, though for Bitcoin to recover to $6,000 levels the broader market will need to move into positive territory in the middle part of the day, with resistance likely to build at $6,000 as the day progresses.

Failure to move through the morning’s high to $6,000 levels and the day’s first major resistance level could see Bitcoin cough up the morning’s gains, which would bring the day’s first major support level at $5,731.43 into play before any recovery.

While Bitcoin has managed to avoid striking a new swing lo since 24^th April’s $5,755, the recent sell-offs continue to support the bearish outlook and sub-$5,000 levels before any recovery can ensue and governments and regulators will likely be more than aware of how much of an impact their planned regulations will have on Bitcoin and the broader market.

Unlike the more traditional asset classes that tend to have sentiment towards key events priced in, the speculative nature of the cryptomarket suggests that nothing has been priced in, leaving the market firmly in the hands of the bears and ultimately governments and regulators until the roll out of defined regulations for investors to digest and move on from.

Elsewhere, while Bitcoin and Bitcoin Cash held on to positive territory at the time of writing, there was plenty of red, with Ethereum, Litecoin and Ripple’s XRP amongst a number of the crypto majors in negative territory.

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This article was originally posted on FX Empire

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