Bitcoin saw red on Thursday, falling by 0.68% to reverse Wednesday’s 0.37% gain, with Bitcoin ending the day at $6714.3.
A relatively choppy start to the day saw Bitcoin strike an early intraday high $6,788.8 before easing back through the late morning and second half of the day, the day’s high having fallen short of the first major resistance level at $6,869.8 and well short of the all-important 23.6% FIB Retracement Level of $7,026.
The morning pullback saw Bitcoin fall to an intraday low $6,679.3 before recovering to $6,700 levels, Bitcoin managing to hold above the first major support level at $6,604.8 in what ended up being a relatively range bound day in spite of the choppiness through the morning.
For the broader market there were some positives, with initial coin offerings getting some support from a member of Congress in the U.S, though there was also plenty of negative news, with fake crypto exchanges and news of banks closing crypto-related accounts in Ireland providing yet more evidence of just how unwilling financial institutions are to support the cryptomarket.
At the time of writing, Bitcoin was down 3.27% to $6,495.8, with a broad based market sell-off on news of the South Korean government launching investigations into recent hacks doing the damage.
A start of the day $6,731 high came up short of the first major resistance level at $6,775.63 before the reversal kicked in, with Bitcoin falling through the first major support level at $6,666.13 and second major support level at $6,617.97 to $6,616.3, with a second wave of selling seeing Bitcoin tumble through the third major support level at $6,508.47 to a morning low $6,461.6 before settling.
For the day ahead, a move back through the third major support level at $6,508.47 to the day’s second major support level at $6,617.97 would signal a possible recovery, though Bitcoin will need to break out from the second major support level to take a run at the first major support level to limit the losses through the day.
Failure to break through the first and second major support levels to $6,660 levels could see Bitcoin take a third hit later in the day to bring sub-$6,400 levels into play and raise the prospects of sub-$6,000 levels before any meaningful recovery, the moves through the second half of the week affirming the bearish trend formed at 5th May’s swing hi $9,999.
We had seen the markets respond to the hacks, in anticipation of such a move by the South Korean government and the uncertainty now will be what is uncovered and whether the government will introduce other requirements across the exchanges.
Elsewhere in the cryptomarket, EOS and Cardano’s ADA saw some of the heaviest losses, the pair down 8.79% and 6.78% respectively, with Ripple’s XRP and Bitcoin seeing the lightest losses through the morning.
The bears remain in control and we still see little reason for a bearish trend reversal, with so much uncertainty over what lies ahead from a regulatory perspective.
This article was originally posted on FX Empire
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