Bitcoin – Another Day in the Ranges or Can the Bulls Make a Move?

Bitcoin gained 0.33% on Sunday, partially reversing Saturday’s 0.67% loss, to end the day at $6,617, Sunday’s gain reducing Bitcoin’s loss for the week to just 0.07%.

A bearish morning saw Bitcoin slide from a morning high $6,605.8, through the first major support level at $6,656.47, to an intraday low $6,525 before steadying, Bitcoin’s struggles to hold on to $6,600 levels continuing through the morning.

Relatively range bound through the afternoon, Bitcoin failed to break back through to $6,600 levels until a late in the day rally that saw Bitcoin strike an intraday high $6,640.4 before easing back, resistance at the day’s first major resistance level at $6,640.97 pinning Bitcoin back from more material gains on the day.

While Bitcoin ended the week in the red, the good news for the Bitcoin bulls was the hold on to $6,600 levels by the day’s end. The bulls will be looking for a move back through to $6,700 levels to take another run at the 26.2% FIB Retracement Level of $6,757, with Bitcoin needing to breakout to $7,000 levels and the 38.2% FIB Retracement Level of $7,376 to begin the formation of a bearish trend reversal.

With volatility on the lower side, Bitcoin is going to need to have a spectacular week to form a bullish trend, uncertainty over the pending SEC decision and anticipated G20 rules and regulations for the cryptomarkets reasons for Bitcoin’s upside to be limited.

Elsewhere in the cryptomarket, it was a mixed bag, some minor losses and gains seeing the total market cap hover at just under the $220bn mark, with Bitcoin’s dominance holding on to 52% levels in spite of its minor loss for the week.

On the news front, it was a relatively quiet weekend, with the general chatter relating to low volumes and volatility and hopes of the SEC finally turning the corner and approving at least a number of the Bitcoin ETF applications under review.

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At the time of writing, Bitcoin was down 0.09% to $6,603.4, with Bitcoin pulling back from a start of a day morning high $6,622.4 to a morning low $6,599.2 before recovering to $6,600 levels, the day’s major support and resistance levels left untested early on.

For the day ahead, a move back through the morning high $6,622.4 would support a run at the day’s first major resistance level at $6,663.27, while we would expect Bitcoin to continue falling short of the 23.6% FIB Retracement Level of $6,757 and $7,000 levels with regulatory risk continuing to limit Bitcoin’s progress near-term.

Failure to move back through the morning high $6,622.4 could see Bitcoin ease back to sub-$6,600 levels to bring the day’s first major support level at $6,547.87 into play, a fall through $6,695 a signal of a possible sell-off later in the day.