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Bitcoin Treads Water as Bitcoin Cash Gets Hit with more Bad News

Bob Mason

Bitcoin gained just 0.26% on Sunday, following on from a 0.19% rise on Saturday to end the day at $6,447.9, with the weekend’s gains leaving Bitcoin with just a 0.68% loss for the week, Monday through Sunday.

While the end result was a relatively tame one for Bitcoin, recent days have certainly seen volatility pickup, with Sunday seeing some relatively large swings, when comparing to the millpond moves through October.

After a relatively range bound morning, a broad based cryptomarket sell-off ultimately weighed, with Bitcoin sliding through the first major support level at $6,407.23 and the second major support level at $6,383.37 to an early afternoon intraday low $6,357.8 before recovering back through to $6,400 levels.

The reversal through to sub-$6,400 levels came off the back of the continued reversal in Bitcoin Cash ahead of the 15th’s hard fork that has continued to take the crypto limelight as both sides of the hard fork feud, though for now BCH looks set to weather the storm.

For the Bitcoin bulls, there would have been some relief, with sub-$6,400 support levels kicking in for a 2nd day this week, driving Bitcoin back to a late in the day intraday high $6,459.9, coming up just shy of the first major resistance level at $6,462.13 before easing back.

It was a 2nd consecutive day that Bitcoin failed to break through to $6,500 levels and a 4th consecutive day of Bitcoin failing to close out at $6,500 levels, affirming the negative bias in play.

General talk is that Bitcoin continues to hover close to its floor, with the lack of a catalyst leaving investor interest on the lighter side ahead of the SEC’s decision on the Bitcoin ETFs. While the bulls will be suggesting clearer skies ahead, things could go the other way should the SEC deliver another deadline extension or, worse yet, decline all 9, a possibility that justifies the caution demonstrated by Bitcoin investors in recent weeks.

Elsewhere, there’s certainly been a different story, with some of the majors making reasonable gains over the last week, Ripple’s XRP amongst the front runners, gaining 8.5%, while Bitcoin Cash saw red, a 6.38% fall eating into the previous week’s gains.

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At the time of writing, Bitcoin was up 0.11% to $6,455, with Bitcoin moving to a morning high $6,481 before pulling back to a morning low $6,444.4, the early move seeing Bitcoin come within range of the first major resistance level at $6,485.93 before easing back, the day’s major support levels left untested early on.

For the day ahead, a move back through the morning high and a break through the first major resistance level at $6,485.93 would support a run at $6,500 levels before any pullback, though Bitcoin will need to make a move in the earlier part of the day to support a return to $6,500 levels.

Failure to move back through $6,450 to the morning high $6,481 could see Bitcoin hit reverse later in the day, with a fall through the morning low $6,444.4 to $6,420 levels bringing sub-$6,400 levels and the day’s first major support level at $6,383.83 into play before any recovery, more heavy losses unlikely barring particularly negative news hitting the wires.

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This article was originally posted on FX Empire

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