Bitcoin and the Clan See Red as Investors Lock in Gains

It’s back into the red for the majors. A Bitcoin move back through $7,930 could signal a market rebound…
Bitcoin coin on white keyboard

Bitcoin fell by 2.41% on Monday. Partially reversing a 12.8% rally from Sunday, Bitcoin ended the day at $7,990.6.

A bearish start to the day saw Bitcoin slide from an intraday high $8,188 to an early afternoon intraday low $7,600.1.

In spite of the bearish morning, Bitcoin steered clear of the first major support level at $7,535.33.

Finding support from the broader market, Bitcoin managed to strike a 2nd half of a day high $8,112.0 before easing back.

Falling well short of the day’s major resistance levels, Bitcoin gave up $8,000 by the day end.

Elsewhere,

Across the top 10 cryptos, it was mostly red for the majors. Leading the way down were Stellar’s Lumen and Ripple’s XRP, which fell by 5.65% and by 4.49% respectively.

Having trailed the broader market through most of April and May, the pair had played catch up in last week’s crypto rally.

The heavier losses on the day were a reflection of the size of the gains made in the rebound rather than a shift in sentiment towards the pair.

EOS (-3.42%), Ethereum (-3.16%), and Litecoin (-3.51) also saw relatively heavy losses on the day.

Bucking the trend was Binance Coin, which was the only major to close out the day in the green with a 1.31% gain.

The latest broad-market reversal came from a delayed market reaction to the news that the SEC once again delayed its decision on the Bitcoin ETF applications.

Expectations had been for the SEC to finally deliver. As we had covered previously, however, a crypto regulatory environment would need to be in place before the SEC is likely to consider any approvals.

The G20 rules and regulations are due out this summer, assuming there are no delays. It may well be a while before the SEC will can comfortable to approving the ETFs.

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This Morning

At the time of writing, Bitcoin was down by 1.13% to $7,900.5. Bearish through the early hours, Bitcoin fell from a morning high $8,034.0 to a low $7,836.8 before finding support.

Bitcoin moved within relatively tight ranges to leave the major support and resistance levels untested.

Elsewhere, it was a sea of red across the crypto top 10. Leading the way down was Binance Coin, which was down by 3.26% at the time of writing.

[fx-image src=https://www.tradingview.com/x/0BBqfrbU/ originalWidth=761 ratio=1.3 data-zoom-target=https://www.tradingview.com/x/0BBqfrbU/]

For the day ahead

Bitcoin would need to move back through to $7,930 levels to support a rebound later in the day. A move through $7,930 would bring $8,000 levels back into play.

Support from the broader market would be needed, however, for Bitcoin to take a run at the first major resistance level at $8,252.37.

Barring a broad-based crypto rebound, Monday’s high $8,188 would likely cap any upside in the event of a recovery.

Failure to move through to $7,930 levels could see Bitcoin fall deeper into the red. A pullback through the morning low $7,836.8 would bring $7,700 levels into play before any recovery.

Barring a broad-based crypto sell-off, Bitcoin will likely steer clear of the first major support level at $7,664.47.

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