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Bitcoin Goes Sideways as Support Continues to Limit the Downside

Bitcoin gained 1.48% on Wednesday, partially reversing Tuesday’s 2.06% fall, to end the day at $9,320.3, bringing to end and 3 consecutive days’ of decline.

An early morning slide saw Bitcoin fall through the 23.6% FIB Retracement Level of $9,173.3 to sub-$9,000 levels, with a morning low $8,980, testing the day’s first major support level at $8,991.4 before bouncing back through the afternoon to a day high $9,375.8.

Bitcoin’s break out from the 23.6% FIB Retracement level of $9,173.3 continued to support the bullish trend formed at 6th April’s swing lo $6,500.2, while failing to test the day’s first major resistance level a $9,417.1 continues to pressure the bulls, Bitcoin’s day highs on a downward trajectory since 5th May’s swing hi $9,999.

While the recent decline and heighted resistance at $10,000 has led to calls of a near-term bearish trend, Bitcoin’s continued hold above the 23.6% FIB Retracement Level of $9,173.3 is the positive for the Bitcoin bulls, though following a period of downward pressure, Bitcoin will need to make a move for $10,000 and log in a new swing hi to avoid a material pullback, the Bitcoin bears waiting in the wings.

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Sentiment across the market has been mixed of late, with investors once more fretting over the prospects of regulations hitting the cryptomarket, though how Bitcoin will be classified will likely be of greater significance, classification as a true cryptocurrency and not as a security the most favourable outcome from a regulatory standpoint, for the Bitcoin bulls at least.

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At the time of writing, Bitcoin was up just 0.08% to $9,325.7, the start of the day having been relatively range bound.

A morning low $9,291.0 held well above the 23.6% FIB Retracement Level of $9,173.3 and the day’s first major support level at $9,074.93, while a start of the day $9,374.0 high fell well short of the first major resistance level at $9,470.73.

The Bitcoin bulls and the broader market can be particularly unforgiving and Bitcoin has paid the price for failing to break through to $10,000 levels last week, with this week’s moves seeing Bitcoin tap in a downward trend on the intraday lows, Wednesday’s sub-$9,000 the first since 2nd May.

For the day ahead, a move through the morning’s high $9,374 would support a run at the day’s first major resistance level at $9,470.73 to restore some confidence ahead of the weekend and recover some of the week’s losses.

We will expect Bitcoin to face plenty of resistance however, with any pullback likely to see Bitcoin test support at the first major support level at $9,074.93 before any recovery, a close at around the day’s first major resistance level a positive for the Bitcoin bulls going into the latter part of the week.

Failing to hold on to $9,300 levels through the morning will likely see a dip through the middle of the day to test support at the 23.6% FIB Retracement Level, with sentiment across the broader market to dictate whether Bitcoin will call on support at the day’s first major support level at $9,074.93.

It’s been another testy start to the day and the crypto majors are yet to break free from the bears who have managed to take control this week.

Elsewhere in the market, Litecoin was leading the way, up 1.6% at the time of writing, while Cardano’s ADA saw one of the heaviest losses early on, down 1.51%.

BTC/USD 10/05/18 4-Hourly Chart
BTC/USD 10/05/18 4-Hourly Chart

 

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This article was originally posted on FX Empire

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