Bitcoin – Bulls Look to Shake Off 2-Months in the Red

Bitcoin rose by just 0.37% on Sunday, partially reversing a 0.65% decline on Saturday, to end the week down 1.31% to $6,621.9, the week’s loss contributing to September’s 5.61% fall, while Bitcoin managed to gain 3.6% for the September quarter.

A relatively choppy end to the quarter saw Bitcoin recover from pullback to an early morning low $6,556.8, a broad based cryptomarket rally leading Bitcoin to a late morning intraday high $6,662.8, falling short of the first major resistance level at $6,666.87 before being hit by a cryptomarket sell-off.

Tracking the broader market, Bitcoin slid back through to sub-$6,600 levels and an intraday low $6,529.6 before finding support, the first major support level at $6,485.97 left untested on the day. A late in the day recovery saw Bitcoin move back through to $6,600 levels and into positive territory by the day’s end to support a positive start to the 4th quarter.

With Bitcoin seeing red for a 2nd consecutive month, pinning back the gain for the quarter, the extended bearish trend, formed at early May’s swing hi $9,999, remained intact, Bitcoin having continued to struggle to break out from the 23.6% FIB Retracement Level of $6,757 since the late July rally that saw Bitcoin all too briefly break through the 62% FIB Retracement Level of $8,378 to a 3rd quarter high $8,506.7.

For the Bitcoin bulls, there will be a few hurdles to get over before hopes of another 4th quarter rally can materialize, the G20’s delayed rollout of unified rules and regulations for the cryptomarket anticipated this month, with the SEC continuing its review of Bitcoin ETF applications, a decision on the latest VanEk application pending.

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At the time of writing, Bitcoin was up 0.33% to $6,644.3, with Bitcoin moving from a start of a day morning low $6,621.8 to a morning high $6,666 before easing back. The moves through the early part of the morning left the day’s major support and resistance levels left untested and, more importantly, Bitcoin managed to hold on to $6,600 levels.

For the day ahead, a move back through the morning high $6,666 would likely see Bitcoin break through the day’s first major resistance level at $6,679.93 to bring $6,700 levels into play, while we would expect Bitcoin to fall short of the second major resistance level at $6,737.97 and the 23.6% FIB Retracement Level of $6,757 barring particularly positive news hitting the crypto wires.

Failure to take a run at the day’s first major resistance level at $6,679.93 could see Bitcoin hit reverse later in the day, with a pullback through the morning low $6,621.8 bringing sub-$6,600 levels and the day’s first major support level at $6,546.73 into play.

For the Bitcoin bulls, holding above $6,605 through to the early afternoon may ultimately be key to avoiding a more material reversal later in the day, while a material news driven sell-off would likely see Bitcoin return to sub-$6,500 levels before any recovery.

This article was originally posted on FX Empire

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