Bitcoin Struggles to Regain $8,000 and that Could Mean Trouble

Bitcoin slid by 3.93% on Wednesday. Following on from a 0.67% loss on Tuesday, Bitcoin ended the day at $7,620.

Bearish through the morning, Bitcoin fell from a morning high $7,998.5 to a late morning low $7,750 before finding support.

Falling through the first major support level at $7,799.67, Bitcoin recovered to an early afternoon intraday high $8,039.9.

Falling short of the first major resistance level at $8,078.87, Bitcoin slide to a late intraday low $7,500.

The late sell-off saw Bitcoin slide back through the first major support level at $7,799.67 and second major support level at $7,667.63.

A 3rd consecutive day in the red left Bitcoin down by 6.9% for the current week.


Across the top 10 cryptos, it was a sea of red on Wednesday.

Leading the way down on the day were Stellar’s Lumen and Cardano’s ADA, which fell by 9.12% and by 8.09% respectively.

Bitcoin Cash ABC (-6.82%), Ripple’s XRP (-6.36%) and Binance Coin (-5.32%) also saw heavy losses.

For Litecoin and Ethereum, 3.87% and 4.45% losses were minor relative to the broader market.

While it was a particularly bearish day on Wednesday, Binance Coin managed to hold onto positive territory for the current week. Bucking the trend from the broader market, Binance Coin was up by 5.3% to the end of Tuesday.

Elsewhere, Stellar’s Lumen, Ripple’s XRP and Cardano’s ADA saw double-digit losses. Leading the way down was Stellar’s Lumen with a 14.4% slide. Ripple’s XRP and Cardano’s ADA were down by 11.2% and 10.5%.

As a result of the pullback, the total crypto market cap is down to $239bn levels, with the 24-hour trading volumes easing back further to $72bn levels.

The current week reversal coincided with news of the SEC further delaying the Bitcoin ETF decisions. A lack of a near-term catalyst left Bitcoin struggling at $8,000, ultimately weighing on the broader market.

This Morning,

At the time of writing, Bitcoin was up by 0.13% to $7,630.0.

Moves through the early morning saw Bitcoin rise from a morning low $7,525.0 to a morning high $7,701.6 before easing back.

Bitcoin left the major support and resistance levels untested early on and more significantly continued to fall short of $8,000 levels.

Elsewhere, Stellar’s Lumen and Ripple’s XRP joined Bitcoin in the green, with gains of $0.07% and 0.35% respectively.

The rest of the pack were in the red, at the time of writing, led by Bitcoin Cash ABC, which was down by 0.97%.

BTC/USD 23/05/19 Daily Chart

For the day ahead

Bitcoin would need to move back through to $7,720 levels to support a rally later in the day. A move through $7,780 would bring the first major resistance level at $7,939.93 into play.

For the broader market, Bitcoin would need to break back through to $8,000 levels and Wednesday’s high $8,039.9 to provide support.

Failure to move back through to $7,720 levels could see Bitcoin hit reverse. A slide back through to $7,500 levels would bring the first major support level at $7,400.03 into play.

Barring a crypto meltdown, Bitcoin would likely steer clear of sub-$7,400 levels in the event of a reversal.

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