Bitcoin – A Breakout to $4,300 Levels Needed to Avoid the Bear Traps

Bitcoin joins the broader market in the green early on, with a move through to $4,200 levels needed to support the upward momentum.
Bob Mason
crypto-market-crash

Bitcoin slipped by 0.34% on Tuesday, following on from a 1.33% fall on Monday, to end the day at $4,100, the day’s loss a 4th for 2019.

A bearish start to the day saw Bitcoin fall to an early morning intraday low $4,056.0 before steadying, Bitcoin managing to hold above the day’s first major support level at $4,040.20 and more importantly hold onto $4,000 levels through the day.

Tracking the broader market, Bitcoin recovered to strike an early afternoon intraday high $4,215.8, breaking through the day’s first major resistance level at $4,192.3 to hit $4,200 levels for the 2nd time this year before easing back.

Through the latter part of the day, sub-$4,100 support levels ensured Bitcoin was able to wrap up the day at $4,100 levels for a 3rd consecutive day to support a shift in sentiment going into the New Year, the Bitcoin bulls attempting a breakout from the current ranges.

Across the broader market, it was a relatively bullish day for the top-10 cryptos, with Tron cementing its number 9 ranking to begin eyeing Tether at number 8 by market cap, while a Litecoin recovery brings both EOS and Bitcoin Cash ABC’s 5th and 4th spots into play in the coming weeks.

The relatively bullish day saw the total crypto market cap rise back up to $136.33bn, with Bitcoin’s dominance easing back to 51.7% at the time of writing, a bullish indicator for the broader market.

For the cryptomarket, the good news for now is the lack of negative news that has been the market’s nemesis, with reports hitting the crypto wires of Japan’s FSA considering whether the time has come for ETFs to be introduced that track the cryptomarket, the news a positive for the Bitcoin and the broader market.

Following the SEC’s decision to decline 9 Bitcoin ETFs last year amidst concerns over price manipulation and other fraudulent activities, any approval by the FSA is unlikely to influence the SEC’s ongoing review of its decision to reject the 9 last year.

As is the case with the cryptomarket, speculation will come into play however, with the crypto bulls likely to talk up the likelihood of the SEC reversing its decision on the 9 Bitcoin ETFs should the FSA agree to the introduction of crypto ETFs.

Either way, the proof will be in the pudding and the inflow of institutional money would need to meet market expectations for the majors to hold onto any gains made leading up to the approval and introduction of any ETFs, market conditions at the time likely to have a material influence on institutional investor appetite.

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At the time of writing, Bitcoin was up 1.23% to $4,150.3, Bitcoin recovering from a start of a day morning low $4,072.7 to strike a morning high $4,161.5 before easing back, the day’s major support and resistance levels left untested early on.

For the day ahead, a hold onto $4,100 levels through the morning would support another run at the first major resistance level at $4,191.87 to bring $4,200 levels back into play, with strong resistance likely to pin Bitcoin back from a break through the second major resistance level at $4,283.73 to hit $4,300 levels later in the day.

Failure to hold onto $4,100 levels could see Bitcoin pullback through the morning low to call on support at the first major support level at $4,032.07 before any recovery, sub-$4,000 support levels unlikely to be tested barring a cryptomarket reversal later in the day.

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