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Bitcoin – Good News is Bad News and That’s Bad for Bitcoin

Bob Mason
Updated

Bitcoin fell by 0.47% on Friday, following a 2.12% slide on Thursday, to end the week down 7.27% at $6,219.6.

Following Thursday’s late in the day recovery, Bitcoin moved within relatively tight ranges through the morning and early afternoon on Friday, with a morning low $6,220 and mid-day high $6,286.8 leaving the day’s major support and resistance levels untested.

A mid-afternoon spike saw Bitcoin come within reach of the day’s first major resistance level at $6,386.97, with an intraday high $6,339.9 before tumbling to an intraday low $6,125, Bitcoin managing to avoid the day’s first major support level at $6,089.17, while continuing the extended bearish trend formed at 5th May’s swing hi $9,999.

In spite of the losses through the week, Monday through Friday, news hitting the wires was not all bad, with the South Korean government’s cryto arm approving 12 exchanges from the summer probe, with well-known crypto exchanges UPbit and Bithumb among the approved twelve, Bithumb known for all the wrong reasons.

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For the cryptomarkets, the hope will be that South Korea’s probe considered the G20’s likely rules and regs to avoid having to kick off another probe upon release of more unified regulations for the cryptomarkets.

The very approval of Bithumb for having the appropriate level of security and internal systems in place weighed on the markets, the Bithumb hacking suggesting the security levels are far from at the levels that will likely be required by the G20.

There’s plenty of uncertainty and with good cause, some of the major crypto exchanges at risk of having their doors closed to new money should they fail to meet the G20 rules and regs, even if they meet domestic requirements.

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At the time of writing, Bitcoin was up 0.14% to $6,228.6 as the majors begin to recover from Friday afternoon’s reversal that had seen Bitcoin down at $6,100 levels.

An early morning $6,277.6 high left Bitcoin well short of the day’s first major resistance level at $6,331.33, with the morning’s $6,196 low steering clear of the first major support level at $6,089.17 before moving back through to $6,200 levels.

For the day ahead, a hold at current levels would support a run at $6,300 to bring the day’s first major resistance level at $6,331.33 into play, while even a weekend rally likely to leave Bitcoin short of $6,400 levels on the day.

Failure to move through to $6,300 levels could see Bitcoin fall back to $6,100 levels to test the day’s first major support level at $6,116.43 before any recovery, Bitcoin unlikely to test sub-$6,000 support levels through the early part of the weekend, barring materially negative news hitting the wires.

It’s still looking bearish for Bitcoin and the broader market, with the Bitcoin bulls in need for a solid and sustainable rally to bring the 23.6% FIB Retracement Level of $6,757 back into play, Bitcoin having failed to break out from the 23.6% FIB on each run through last weekend and the early part of the week.

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This article was originally posted on FX Empire

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