Bitcoin came under heavy pressure at the close of last week, falling 10% on Thursday and an additional 5% on Friday. Still Bitcoin went above the $6,100 level and bounced modestly over the weekend to reach a higher level than $6,100.
The initial drop in the leading
cryptocurrency came after the U.S. Securities and Exchange Commission announced
late Thursday that they were delaying the decision on whether to allow a
Bitcoin ETF until September 30. Bitcoin was already in bear-mode and the
disappointing news from the SEC was enough to put Bitcoin under heavy pressure.
On a technical basis the momentum for
Bitcoin, and the cryptocurrency markets in general, is very much to the
downside. Even worse, there’s no indication of a rebound or reversal in the
market anytime soon. Since nearly reaching $20,000 in December the largest
cryptocurrency in terms of market capitalization has continued to move steadily
lower.
The $6,100 to $6,200 level has been key
near term support for Bitcoin, and it is now coming under pressure from market
bears, who are looking to break the support level and send the price to the
next support level of $5,800 which was last reached in June.
Saturday saw Bitcoin trading just above the
$6,100 level all day, but Sunday gave Bitcoin a small reprieve as it bounced
higher by $200 and held the gains throughout the day. The coming week is likely
to see more pressure for Bitcoin as there is no good news on the horizon.
Sources: FXStreet.com, Newsbtc.com
