Bitcoin Tech Analysis – Recap and Mid-Day Review

Bitcoin gained 2.56% on Thursday. Partially reversing a 7.72% slide from Wednesday, Bitcoin ended the day at $10,324.3.

A bullish start to the day saw Bitcoin strike an early morning high $10,249 before hitting reverse.

Falling well short of the first major resistance level at $10,660.4, Bitcoin tumbled to a mid-morning intraday low $9,522.

The sell-off saw Bitcoin slide through the 38.2% FIB of $9,734 and first major support level at $9,717.4.

With the morning sell-off a spill-over from Wednesday afternoon’s meltdown, support kicked in by late morning.

Bitcoin bounced back to a late intraday high $10,471 before easing back. Of significance was a move back through the 38.2% FIB of $9,734 to return to $10,000 levels.

In spite of the rebound, however, Bitcoin failed to test the first major resistance level at $10,660.4.

For the Bitcoin bulls, the near-term bullish trend, formed at mid-December’s swing lo $3,215.2 remained intact. Bitcoin continued to find support at the 38.2% FIB of $9,734.

The upside on the day was just the 2^nd in 7-days and more importantly pulled Bitcoin back into positive territory for the current month.

On a rollercoaster of a day, Bitcoin’s market cap slid from $183bn levels to a day low $172.99bn before the rebound. At the time of writing, Bitcoin’s market cap stood at $177.14bn, easing back from $180bn levels late on Thursday.

Bitcoin’s brief return to $10,000 levels supported Bitcoin’s dominance to hold at 68% levels.

The morning sell-off coincided with the risk aversion through the Asian session on Thursday, with the equity markets responding to China’s comments on trade.

A shift in sentiment across the global financial markets through the day also coincided with the cryptomarket rebound.

Once again the correlation between the equity and crypto-asset classes was evident, discounting Bitcoin’s safe-haven status.

This Morning

At the time of writing, Bitcoin was down by 4.27% to $9,883.9. A bullish start to the day saw Bitcoin strike an early morning high $10,437 before hitting reverse.

Falling short of the first major resistance level at $10,689.53, Bitcoin slid to a mid-morning low $9,800.

In spite of the sell-off, Bitcoin steered clear of the first major support level at $9,740.53 and 38.2% FIB of $9,734.

For the Day Ahead

A move back through to $10,100 levels would signal the start of the recovery of the morning losses.

Bitcoin would need the support of the broader market, however, to break through to $10,000 levels.

Barring a broad-based crypto rally, Bitcoin will likely continue to fall short of the first major resistance level at $10,689.53.

This morning’s high $10,437 and Thursday’s high $10,471 would likely cap any upside on the day.

Failure to move back through to $10,100 levels would likely see Bitcoin close out the day in the red.

A fall through the morning low $9,800 would bring the first major support level at $9,740.33 and 38.2% FIB of $9,734 into play.

Barring a crypto meltdown, Bitcoin should steer clear of sub-$9,600 levels visited on Thursday.

In the event of an extended sell-off through the day, Bitcoin would likely test the second major support level at $9,156.77.

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The article was written by Anthony Darvall, Chief Market Analyst at easyMarkets (www.easymarkets.com)