Bitcoin Tech Analysis – Recap and Mid-Day Review

Bitcoin slides back to sub-$10,000 as the bears look to take another bite out of the crypto market. The bulls need to steer clear of the 38.2% FIB…
Bharat Gohri
Bitcoin 1

Bitcoin tumbled by 7.72% on Wednesday. Following on from a 4.44% fall on Tuesday, Bitcoin wrapped up the day at $10,064.6.

Bearish from the start of the day, Bitcoin fell from an early intraday high $10,909 to a late morning low $10,403.

The early pullback saw Bitcoin fall through the first major support level at $10,646.67.

Bitcoin found support through the late morning to move back through the first major support level before succumbing to market forces.

A broad-based crypto sell-off saw Bitcoin slide to a late intraday low $9,966 before recovering to $10,000 levels.

The afternoon sell-off saw Bitcoin fall through the first major support level at $10,646.67 and second major support level at $10,389.33. Bitcoin’s fall to sub-$10,000 was the first since 1st August.

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 above the 38.2% FIB of $9,734.

5 days in the red out of the last 6 left Bitcoin in the red for the current month, however. To Tuesday, Bitcoin was down by 0.23%.

While Bitcoin’s dominance held relatively steady at 68% levels, the sell-off saw Bitcoin’s market cap slide from $190bn levels to a low $172.99bn before finding support.

At the time of writing, Bitcoin’s market cap stood at $178.49bn.

There were no major news events that contributed to the recent downward trend. Risk aversion across the more mature asset classes, however, failed to provide support. The latest moves suggest that Bitcoin and the broader crypto market are yet to be considered a safe haven.

This Morning

At the time of writing, Bitcoin was down by 1.34% to $9,929.5. A mixed start to the day saw Bitcoin rise to an early morning high $10,249 before hitting reverse.

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

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

Bitcoin found support from the broader market in the last hour, leading to a move back through the first major support level and 38.2% FIB.

For the Day Ahead

Holding above the 38.2% FIB of $9,734 through the early afternoon would support a run at $10,000 levels.

Bitcoin would need the support of the broader market, however, to take a run at the morning high $10,249.

Barring a broad-based crypto rebound, Bitcoin would likely fall well short of the first major resistance level at $10,660.4.

Failure to hold above the 38.2% FIB of $9,734 could see Bitcoin slide deeper into the red.

A fall back through the first major support level to $9,500 levels would bring the second major support level at $9,370.2 into play.

Barring another crypto meltdown, however, we would expect Bitcoin to steer clear of sub-$9,000 support levels.

Click here to Get Into Cryptocurrency Trading Today

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

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US