Bitcoin – A Steady Morning After, But Will It Be Enough to Draw in the Bulls

Bitcoin in tight ranges once more and it could spell trouble if Bitcoin fails to take a run at $3,500 levels.
Bob Mason
Bitcoin Bruised
Bitcoin mining. A mine with real hardware. Symbols of block chain technology for crypto currency ? metal coin, coal, pickaxe

Bitcoin fell by 1.74% on Wednesday. Reversing a 0.64% rise from Tuesday, Bitcoin ended the day at $3,451.9.

A particularly bearish start to the day saw Bitcoin tumble from an intraday high $3,521 to a morning low $3,434.3 before finding support.

The sell-off saw Bitcoin slide through the first major support level at $3,486.23 and second major support level at $3,459.47.

A partial recovery to an afternoon high $3,463.8 saw Bitcoin break back through the second major support level before hitting reverse again. Bitcoin fell through the second major support level at $3,459.47 and third major support level at $3,417.07 to a late afternoon intraday low $3,405.3.

For the bulls, the only good news from the day was a move back through the third major support level to $3,500 levels by the day’s end. The pullback will be of little consolation, however, with Bitcoin seeing sub-$3,500 support wane through the middle of the week.

Elsewhere

From the top 10 cryptos, Bitcoin Cash SV managed to buck the trend on the day, with a 2.75% gain. A first day in the green in 4 days will provide some hope of a recovery of the current year’s losses.

There’s a long way to go, however, with Bitcoin Cash SV down 26.6% year-to-date and the bearish sentiment continues to be a drag on the broader market.

For the rest of the majors, the bears were in full control. Litecoin saw the heaviest losses on the day, sliding by 4.36%, with Stellar’s Lumen close behind, sliding by 4.29%.

The broad-based crypto sell-off in the early hours of Wednesday morning saw the total crypto market cap fall from $113.45bn to $110.97bn before recovering to $111.6bn at the time of writing.

Wednesday’s reversal came in spite of the news wires being on the quieter side ahead of the early sell-off. Expectations were for bigger losses to hit the majors through the day, which didn’t materialize, but certainly remains a possibility ahead of the weekend.

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At the time of writing, Bitcoin was flat at $3,452.0. In a particularly range bound start to the day, Bitcoin’s morning low $3,447.9 and high $3,453.7 left the day’s major support and resistance levels untested.

For the Bitcoin bulls, a recovery from the morning low will have eased any immediate fears of a return to sub-$3,400 levels ahead of the weekend.

For the day ahead

Bitcoin would need to move through the morning high to $3,460 levels to bring $3,500 levels back into play. A move through to $3,500 levels would bring the first major resistance level at $3,513.5 into focus before any pullback.

We would expect Bitcoin to come up short of the second major resistance level at $3,575.1, however, with Bitcoin having failed to break out from $3,520 levels over the last 3-days.

Failure to move through to $3,460 levels could see Bitcoin move within relatively tight ranges through the day. A pullback through the morning low 3,447.9 could see Bitcoin slide back to sub-$3,410 levels before any recovery. Barring a broad-based crypto sell-off, we would expect Bitcoin to steer clear of sub-$3,400 levels and the first major support level at $3,397.80 on the day.

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