Bitcoin rallied 4.25% on Saturday, reversing Friday’s 2.32% fall on the way to an end of the day $6,909.6.
Saturday’s much needed weekend rally brought an end to 3 consecutive days of losses, with Bitcoin managing to break through to $7,000 levels for the first time since Wednesday.
Bitcoin managed to break through the day’s first major resistance level of $6,806 within the first few hours of the day, and while previous tests of key resistance levels have ultimately led to a sell-off, Bitcoin managed to hold on, moving through the 2nd resistance level of $6,998 in the middle part of the day to hit an intraday high $7,069.13 and come within touching distance of the 23.6% FIB Retracement Level of $7,087.7.
Selling pressure built through the second half of the day, leading to a Bitcoin pullback to sub-$7,000 levels, Bitcoin unable to close at $7,000 levels for a 4th consecutive day.
For the bulls, the good news was that the downward trend on highs and lows through the week had come to an end, though the bearish trend formed at the 21st March’s swing hi $9,188.1 remains intact, with Bitcoin showing little sign of a move through to mid-$7,000 levels anytime soon.
The news wires were relatively silent through the weekend, news of India’s central bank, the RBI, issuing an order for Indian banks to cut all ties with the crypto exchanges and businesses involved in the asset class having limited impact on the markets through the first half of the weekend. The RBI’s announcement does not ban the existence or trading of cryptocurrencies, but it does make it far more difficult for investors to fund trading accounts and remit earnings to bank accounts.
India is not the largest cryptomarket, however, which tempered the market reaction, any similar moves by the BoJ or PBoC an altogether different story for the market.
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At the time of writing, Bitcoin was up 0.98% to $6,972.88, supporting the broader cryptomarket that has enjoyed a positive start to the day following Saturday’s gains.
A morning $7,012.04 high and $6,901 low left key support and resistance levels untested through the early part of the day, while Bitcoin continued to struggle to hold on to $7,000 levels this morning.
Whether there will be some concern over India’s latest move against the cryptomarket remains to be seen, the larger cryptocurrency jurisdictions certainly capable of following suit should fraudulent activity continue to hit the markets. For now, few governments or central banks have been so critical of the market to suggest a similar move, which should be of some comfort going into next week.
For the day ahead, Bitcoin will likely continue to face resistance at the $7,000 psychological level, with Bitcoin needing to move through the 23.6% FIB Retracement Level of $7,087.8 to make a run at the day’s first major resistance level of $7,118.82.
Testing major resistance levels will need a middle of the day bounce, any move back through to the morning’s $7,012.04 high likely to be taken as a sign of a move, though where Bitcoin reaches and where it ends will likely worlds apart, investors still quick to lock in profits.
The bearish trend is still in place and will remain so until Bitcoin moves back through the 38.2% FIB Retracement Level and brings $8,000 into play, a move that remains elusive with so much regulatory uncertainty shrouding the market.
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This article was originally posted on FX Empire