Bitcoin Dips Early, but still has $10,000 in Sight

Bitcoin gained 1.73% on Saturday, reversing Friday’s 0.57% fall, to end the day at $9,860.2.

The bulls failed to pull Bitcoin through to $10,000 for yet another day, making it a 3rd consecutive day that Bitcoin came within $200 of the next milestone in Bitcoin’s recovery.

A morning low $9,685 held well above the day’s first major support level of $9,547.7 and 23.6% FIB Retracement Level of $9,173.3, continuing to support the bullish trend formed back on 6th April, with Bitcoin breaking through the day’s first major resistance level at $9,697.83 and second major resistance level at $9,853.17 to a new swing hi $9,999 in the middle part of the day before easing back by the day’s end.

Falling just $1 short of the magical $10,000 will have contributed to a pullback, though there has been little negative news to suggest a major reversal in the coming days, which would support a relatively quick run through to $11,000 levels in the coming weeks.

The Bitcoin Cash fork will perhaps complicate matters for Bitcoin in the coming week, with the hard fork expected to deliver material enhancements that will ultimately test Bitcoin’s position at the top and the current support that it gets from the Bitcoin bulls.

Bitcoin has certainly lagged Bitcoin Cash since the beginning of April and, while few are expecting the creation of a new coin from the Bitcoin Cash hard fork, the Bitcoin Cash rally has drawn in buyers and has certainly left Bitcoin behind, which could lead to a Bitcoin bounce back once the hard fork hits.

Direction post 15th May’s hard fork will certainly define the year for both Bitcoin and Bitcoin Cash, a continued rally in Bitcoin Cash likely to bring down the curtain on Bitcoin and its role as an alternative to fiat money, assuming that the Bitcoin community and core developers are unable to align and deliver a golden egg.

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At the time of writing, Bitcoin was down 0.88% to $9,774.9, with a start of the day $9,964 high coming up short of the $10,000 level once more, leading to a pullback through to a morning low $9,766.

The moves through the early part of the day have left major support and resistance levels untested and, with Bitcoin continuing to face stern resistance at around the $10,000 level, the Bitcoin bulls may need to bide their time.

For the day ahead, a move through to $10,000 would certainly support a run through the day’s second major resistance level at $10,162.07 to bring $10,500 into play and, in spite of the mornings reversal, a break back into $10,000 levels continues to look on the cards today.

Failing to break through to $10,000 by the late afternoon could test Bitcoin support, Bitcoin having already failed to move through over the three previous sessions. A pullback to $9,750 will bring the day’s first major support level at $9,697.13 into play, while we would expect buyer appetite at the 23.6% FIB Retracement Level of $9,173.3 to be left untested going into the new week.

Elsewhere, NEO bucked the trend early on, up 2.4% at the time of writing, with the rest of the crypto majors taking an early dip, led by a pullback by Bitcoin and Bitcoin Cash, though it’s unlikely to last.

BTC/USD 06/05/18 Hourly Chart

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