Bitcoin – Bears Show Their Teeth to Round off a Rainy November

Hopes of a sustained bounce back going into December were dashed on Friday, with Bitcoin sliding by 6.56%, off the back of 3 consecutive days of gains, to end the day at $4,039.5.

A relatively range bound start to the day saw Bitcoin rise to a mid-morning intraday high $4,368.8, coming up well short of the first major resistance level at $4,482.67 before hitting reverse alongside the broader cryptomarket.

Sliding through the late morning, Bitcoin fell through the first major support level at $4,161.87 and second major support level at $4,004.13 to an intraday low $3,950 before find support, sub-$4,000 support levels proving to be key through the rest of the day.

In spite of managing to move back through to $4,000 levels the damage was done, with investors being given a quick reminder of the bearish cryptomarket environment that has continued to plague the market through the year, Bitcoin’s current extended bearish trend having kicked in at a swing hi $9,999 struck back in the first week of May.

It was a bad month for Bitcoin, logging a 36.6% slide to leave it down 70.7% for the current year, losses that would certainly give many an investor a reason to pause before considering a second attempt at Bitcoin and the cryptomarket in general.

For those relatively new to Bitcoin, November’s reversal was certainly the amongst the worst in recent times, though there have certainly been heavier intra-month losses, Bitcoin’s 49% plunge in early February of this year becoming the foundations of the 2018 bear run.

For the Bitcoin bulls, near-term hope of a rebound was hinged on the SEC’s pending decision on the Bitcoin ETF applications that had been declined and placed under review. More negative news hit the wires of SEC Chairman Clayton’s discomfort in approving any Bitcoin ETFs, the SEC’s concerns over price manipulation and custodial infrastructure having yet to be addressed being cited as reasons to decline, as cases of price manipulation continue, with even the DoJ currently investigating Bitcoin’s 2017 rally.

The reality remains, as we covered on news of the 9 Bitcoin ETFs being placed under review, that any approval of institutional products would be unlikely before an appropriate regulatory framework has been put in place and, with the G20’s planned rollout of unified rules and regulations now having been pushed back to next summer, one can only imagine that only after that can the market expect the much needed, stickier institutional money to begin rolling in.

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At the time of writing, Bitcoin was back in the red, down 0.82% to $4,006.5, with moves through the early morning seeing Bitcoin rise to a morning high $4,070.8 before sliding to a low $3,986.1, the day’s major support and resistance levels left untested as Bitcoin relies on $4,000 support to avoid a more material slide.

For the day ahead, a move back through the morning high $4,070.8 to $4,100 levels would signal the start of a weekend bounce to bring $4,200 levels and the day’s first major resistance level at $4,288.87 into play before any pullback, $4,300 levels and Friday’s $4,368.8 high unlikely to be reached on the day.

Failure to move back through the morning high to $4,100 levels will likely leave Bitcoin in the hands of the bears, a pullback through to sub-$4,000 levels and the morning low $3,986.1 bringing the first major support level at $3,870.07 into play before any recovery, the Bitcoin bears looking for a sub-$4,000 end to the day.