Bitcoin rallies on Monday, yet fails at resistance
Bitcoin initially tried to rally during Monday trading, but you can see clearly that the 7200 level has offered a lot of resistance recently. As we have seen several times before, the market approach that level and then rolled over. This is a market that simply cannot get any type of momentum going, and because of this I think we will continue to see significant weakness. If we were to break above the $7200 level, that could be a short-term bullish signal, perhaps sending the market to the $7800 level. However, currently it doesn’t look as if it has the momentum.
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The more likely scenario is that we roll over and test the $6800 level, and then again, the $6600 level. A break of their obviously would continue the downtrend, sending market participants looking for fresh, new lows. There are several countries looking into more regulation for crypto currencies, and that of course continues to weigh upon these markets. Beyond that, slow adoption of Bitcoin is finally starting to catch up with the pricing mechanism, and therefore it’s difficult to imagine a bullish scenario as things stand right now.
That’s not to say you can’t trade back and forth, simply that you should probably keep a negative bias overall. I suspect that there will be even more support at the $6000 level underneath, if we finally get down there. It’s a large, round, psychologically significant number, so I would think a bounce would be very likely. At this rate, it’s not going to take long to find out.
BTC/USD Video 03.04.18
This article was originally posted on FX Empire