Bitcoin Tech Analysis – Recap and Mid-Morning Review – 08/09/19Bitcoin finds support early on but finds strong resistance at $10,600. Failure to break through to $10,600 could weigh later in the day.
Bitcoin found much-needed support on Saturday, bringing to an end a run of 3 consecutive days in the red.
Rising by 1.73% on Saturday, Bitcoin partially reversed a 2.59% slide from Friday, to end the day at $10,489.
A relatively bullish day saw Bitcoin rise from a start of a day intraday low $10,306 to a late afternoon intraday high $10,582.
Moving through relatively tight ranges, Bitcoin left the major support and resistance levels untested.
Through the latter part of the day, resistance at $10,500 limited Bitcoin’s upside on the day. Bitcoin’s failure to break out from $10,500 left Bitcoin at sub-$10,500 levels at the day end.
In spite of seeing red for 3 consecutive days ahead of the weekend, it’s been a bullish start to the month, with Bitcoin was up by 9.06% to the end of Saturday. Outgunning all but Monero’s XMR from the top 10, Bitcoin’s dominance held onto 70% levels.
For the bulls, the extended bullish trend, formed at 15th December’s swing lo $3,215.2, remained firmly intact. Early September’s break back through the 38.2% FIB of $9,734 and continued to hold well above the 60.2% FIB of $7,245 reaffirmed the bullish trend.
At the time of writing, Bitcoin was up by 0.73% to $10,565.2. A bullish start to the day saw Bitcoin move from an early morning low $10,490 to mid-morning high $10,599 before easing back.
Bitcoin left the major support and resistance levels untested, with resistance at $10,600 pinning Bitcoin back early on.
For the Day Ahead
A move back through the morning high $10,599 to $10,600 levels would bring the first major resistance level at $10,612 into play.
Bitcoin would need the support of the broader market, however, to break out from this morning’s high $10,599.
Barring an extended broad-based crypto rally, Bitcoin would likely come up short of the second major resistance level at $10,735.
In the event of a breakout, Bitcoin could revisit Friday’s day high $10,933 before any pullback.
Failure to move back through the morning low could pressure Bitcoin later in the day.
A fall back through the morning low $10,490 to $10,450 levels would bring the first major support level at $10,336 into play.
Barring a broad-based crypto reversal, Bitcoin should steer clear of sub-$10,300 levels and Friday’s low $10,208.
Looking at the Technical Indicators
Major Support Level: $10,336
Major Resistance Level: $10,612
23.6% FIB Retracement Level: $11,275
38.2% FIB Retracement Level: $9,734
62% FIB Retracement Level: $7,245
The article was written by Bharat Gohri, Chief Market Analyst at easyMarkets