Bitcoin – A Crypto Surge Drives Bitcoin to $4,200 LevelsThe Bulls will be looking for a move back through to $4,200 levels, a hold onto $4,100 levels through the morning needed to support an afternoon move.
Bitcoin jumped by 6.56% on Sunday, reversing a 1.09% fall from Saturday with interest, to end the week up 4.77% to $4,168.4.
Kicking off the day in the red, Bitcoin and the broader market struggled through the early hours, Bitcoin falling to an early morning intraday low $3,887.5, coming within range of the first major support level at $3,870.3 before making a move.
Steering clear of the bear’s near-term target of $3,700 was key in the early hours, with support from the broader market driving Bitcoin back through to $3,900 levels by the late afternoon, signalling a possible break through to $4,000 levels.
A late afternoon surge across the crypto market saw Bitcoin break through the day’s major resistance levels to strike a late in the day intraday high $4,218.0 before easing back to $4,100 levels.
For the Bitcoin bulls, Bitcoin managed to hover at round the day’s third major resistance level at $4,170.4, which was a the key outcome of the day, Bitcoin avoiding one of the post rally pullbacks that have been seen in recent months, reflecting some investor confidence in Bitcoin and the broader market.
The broad based crypto rally saw the crypto total market cap rise to $138.34bn, having fallen to a week low $125.55bn on Wednesday, though with Bitcoin’s dominance sitting at 51.6% at the time of writing, some caution would be needed.
Across the top 10 coins, Litecoin was the story of the day once more, with a double digit gain seeing Litecoin bring both EOS and Bitcoin CASH ABC into its sights, Litecoin’s market cap having jumped from 1.91bn at the start of the week to a week high $2.36bn late in the day in Sunday.
The upward moves across the broader market came off the back of some bullish chatter hitting the crypto news wires, including the anticipated tokenisation of tech stocks, which is expected to be the trend for the year ahead and deliver increased access to the crypto market for both retail and institutional investors, not to mention shift the way in which VC firms raise funds and support start-ups.
At the time of writing, Bitcoin was down 0.44% to $4,150.0, an early attempt at a move back through to $4,200 levels coming up short, with Bitcoin falling from a morning high $4,197 to a morning low $4,146.1 before steadying, 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 $4,200 levels, though support from the broader market would be needed for Bitcoin to hold onto any gains and take a run at the day’s first major resistance level at $4,295.10 later in the day.
Failure to hold onto $4,100 levels could see Bitcoin slide back through to $3,900 levels to call on support at the first major support level at $3,964.6 before any recovery, with sub-$3,900 support levels unlikely to be in play through the day.
Early on in the morning, the majors were largely in the red, with a few exceptions, with the late morning being key for Bitcoin and the broader market, Sunday’s late in the day pullback across the majors contributing to the early morning losses.