Bitcoin Down but not Out, an Afternoon Rally on the Cards

Bitcoin gained just 0.69% on Sunday, following Saturday’s 4.74% rally, to end the day at $9,409.4. The weekend’s positive moves saw Bitcoin log a 7.03% rise for the week, Monday through Friday, trailing Bitcoin Cash by quite a margin.

An early morning intraday high $9,565.1 saw Bitcoin fall short of the day’s first major resistance level of $9,645.27, bucking the trend among the other majors, with Bitcoin continuing its struggle to move through to $10,000 levels.

Bitcoin saw a pullback through the morning to a day low $9,180, with Bitcoin managing to avoid falling back through to sub-$9,000 levels for the first time since Tuesday.

With the day’s first major support level of $8,895.27 and 23.6% FIB Retracement Level of $8,996 left untested, the bullish trend continued in spite of the stiff competition from Bitcoin Cash that continues to see increased support and adoption.

For now, Bitcoin’s short comings have certainly not led to a shift in appetite to altcoins that have more to offer in the real world, though one does wonder how long Bitcoin has left at the top with the growing adoptions of the likes of Bitcoin Cash, Litecoin and Ripple’s XRP to consider.

With Bitcoin’s value, mining support will certainly continue until the remaining 20% of the unmined coins have been mined and hit the cryptoworld. What happens after that will be anyone’s guess, but logic suggests that support for the network could have an untimely demise barring enhancements to the protocol that improve its offering, particularly Bitcoin’s block size that continues to hamper its usage as an alternative to fiat money.

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At the time of writing, Bitcoin was down 0.95% to $9,311, reversing Sunday’s gain early on. An early fall through to a morning low $9,242.1 came within reach of the day’s first major support level of $9,204.57, before moving back to $9,300 levels. A start of the day $9,450 high falling well short of the day’s first major resistance level of $9,589.67, as investors locked in profits from the previous week ahead of a week where the bulls will be vying for $10,000.

For the day ahead, holding above the day’s first major support level will be key to see Bitcoin make a move later in the day, the next target for Bitcoin being a return to $9,500 levels and a run at last week’s swing hi $9,767.4.

While we can expect a choppy morning, sub-$9,000 levels will likely be avoided, barring materially negative news hitting the wires, the bullish trend formed back on 6^th April intact following the positive moves last week.

Across in the futures market, the Cboe Bitcoin Futures May contract was up $200 to $9,340. While the futures market has provided little direction in recent weeks, a pickup in volumes should begin to have investors turning to the market for direction, though whether this will be a good thing remains to be seen, the Futures market yet to make any bullish calls to drive Bitcoin to higher ranges.

Elsewhere in the cryptomarket, Monero’s XMR was the worst performer, down 4.01%, while Ethereum was down just 0.87%.

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