Bitcoin – A Bullish Start to the Day Brings Optimism

The bulls are in the driving seat. A break out to $4,300 may be a step too far, but optimism may well deliver a solid start to the 2nd quarter
Bob Mason
Bitcoin 1

Bitcoin rose by just 0.06% on Sunday. Partially reversing a 0.34% fall on Saturday, Bitcoin ended the day at $4,167.5.

A bullish start to the day saw Bitcoin rise to an early morning intraday high $4,182.9 before easing back.

Falling short of the first major resistance level at $4,212.73, Bitcoin fell to a mid-morning intraday low $4,152.8. Steering well clear of the first major support level at $4,114.73, Bitcoin managed to bounce back to $4,179.9.

In spite of some bullish moves elsewhere, Bitcoin failed to break through to $4,200 levels, leading to a range-bound afternoon.

For the Bitcoin bulls, the week delivered a first visit to $4,200 levels since 24th February. Through the week, Bitcoin gained 8.74% to reverse the losses in the month and end March up by 7.05%. Over the 1st quarter, Bitcoin gained 8.74%, all of which came from the last week.

After a bearish start to the month, the moves through the quarter support those suggesting that the market had bottomed out back in February. For those who need reminding, Bitcoin had tumbled by 50% in the 1st quarter of last year…

Elsewhere

Across the top 10 cryptos, Binance continued to light up the board with a 3.43% gain on the day. While up by just 2.7% for the week, it’s been an impressive start to the year. For the month, Binance gained 69.6% and a whopping 181% for the 1st quarter.

Other noteworthy gains for the 1st quarter included Litecoin, which surged by 102.7% and EOS that rallied by 61.8%.

On the other end of the spectrum, Bitcoin Cash SV slid by 23.3%, affirming Bitcoin Cash ABC’s hard fork victory. Joining SV in the red for the quarter were Ripple’s XRP and Stellar’s Lumen. Once the crypto market darlings, the pair bucked the trend and ended the quarter down by 13.1% and 3.6% respectively.

Things could have been far worse for Stellar’s Lumen had it not been for a 26% recovery through the month of March.

Looking at the cryptomarket cap, while not a spectacular move by historical standards, the total market cap recovered from a low $111.04bn in late January to $144bn. Of greater significance was a jump in volumes. 24-hour volumes had fallen to as low as $12bn at the start of the year. By the end of the quarter, 24-hour volumes were sitting at $30bn.

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At the time of writing, Bitcoin was up by 0.6% to $4,192.7. Recovering from an early morning low $4,124, Bitcoin rallied to a morning high $4,198.9. A choppy start to the day saw Bitcoin fall through the first major support level at $4,152.57 before breaking through the first major resistance level at $4,182.67 and second major resistance level at $4,197.83.

For the day ahead

A hold above the 1st major resistance level at $4,182.67 would support a break through the second major resistance level to $4,200 levels.

Following Friday’s high $4,210, support from the broader market would bring the third major resistance level at $4,227.93 into play.

Barring a broad-based crypto rally, however, we would expect Bitcoin to fall short of $4,300 levels on the day.

Failure to hold above the first major resistance level at $4,182.67 could see Bitcoin test the first major support level at $4,152.57. Barring a broad-based crypto sell-off, however, we would expect Bitcoin to steer clear of sub-S4,140 support levels.

In the event of a sell-off, the second major support level at $4,137.63 could come into play before any recovery.

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