Bitcoin Tech Analysis – Recap and Mid-Day Review – 03/09/19

Bitcoin struggles for direction early on. Another move through to $10,500 would signal an 8th consecutive day in the green
Bharat Gohri
Bitcoin and Litecoin over dollar banknotes.

Bitcoin made its move on Monday. A 6.23% rally, following on from a 1.68% rise on Sunday, saw Bitcoin end the day at $10,388.

Through the early morning, it was tight ranges for Bitcoin. Bitcoin eased back to an early morning low $9,754.6 before finding support.

Holding well above the first major support level at $9,600.07 and 38.2% FIB of $9,734, Bitcoin rallied to a late intraday high $10,474.

Bitcoin broke through the day’s major resistance levels on a 1st return to $10,000 levels since 28th August.

In spite of a late pullback, Bitcoin held above the third major resistance level at $10,047.03 at the day end.

The extended bullish trend, formed at 15th December’s swing lo $3,215.2, remained firmly intact. In spite of a pullback from a June swing hi $13,764, Bitcoin continued to steer well clear of the 60.2% FIB of $7,245.

Of greater significance was a rebound through the 38.2% FIB of $9,734 and reversal of August’s losses.

This Morning

At the time of writing, Bitcoin was up by 0.13% to $10,401. A mixed start to the day saw Bitcoin fall to an early morning low $10,328 before finding support. Steering clear of the first major support level at $9,937, Bitcoin struck an early morning high $10,500.

Falling short of the first major resistance level at $10,656.47, Bitcoin eased back to sub-$10,400 levels before finding support.

For the Day Ahead

A move back through the morning high $10,500 would support another run at the first major resistance level at $10,656.47.

Bitcoin would need the support of the broader market, however, to break out from current levels.

Barring a broad-based crypto rally, Monday’s high $10,474 and this morning’s high $10,500 would likely cap any upside.

Failure to move back through to $10,500 levels could see Bitcoin slide back into the red. A fall through the morning low $10,328 to sub-$10,200 levels would bring the first major support level at $9,937.07 into play.

Barring a broad-based crypto sell-off, however, we would expect Bitcoin to steer clear of sub-$10,200 levels on the day.

In the event of a crypto meltdown, the first major support level at $9,937 would likely limit any downside.

Looking at the Technical Indicators

Major Support Level: $9,937.07

Major Resistance Level: $10,656.47

23.6% FIB Retracement Level: $11,275

38.2% FIB Retracement Level: $9,734

62% FIB Retracement Level: $7,245

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The article was written by Bharat Gohri, Chief Market Analyst at easyMarkets

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