Bitcoin – An Elusive $4,000 Opens the Door for the Bears

Bitcoin gained just 0.33% on Thursday. Following a 0.01% fall on Wednesday, Bitcoin ended the day at $3,964.4.

A relatively choppy day saw Bitcoin rally to an early morning intraday high $3,997.4 before hitting reverse. The rally saw Bitcoin break through the first major resistance level at $3,988.3 to came up against stern resistance at $4,000.

The reversal saw Bitcoin slide to a late morning intraday low $3,933.3 before finding support. Steering clear of the first major support level at $3,912.7, Bitcoin recovered to an afternoon high $3,989.6 before easing back late in the day.

A mixed week leaves Bitcoin with a 2.05% gain, Monday through Thursday. More significantly, Bitcoin has failed to hit $4,000 levels since 24^th January. The longer the drought lasts, the more likely a sell-off before any sustainable recovery.

Elsewhere

Across the top 10 cryptos, it was a mixed bag on the day. Leading the way through the day was Binance Coin, which rallied by 3.97%. Close behind was Litecoin, which ended the day with a 2.43% gain. The pair have outgunned the broader market through the current week. Binance has rallied 32.28%, with Litecoin up by 19%.

Elsewhere, Tron’s TRX fell by 1.04% on the day to limit the current week’s gain to just 2.35%. Ripple’s XRP, Bitcoin Cash ABC, and Ethereum also saw red on the day, though the losses were not enough to pull them into the red for the current week.

Bucking the trend through the current week was Stellar’s Lumen, which was down by 1.59%.

The market favorites continue to be Binance and Litecoin as the weekend approaches. For Binance, a new swing hi $15.91, struck on Thursday, reaffirmed a near-term bullish trend formed at an early December swing lo $4.17.

Litecoin may be some way off forming a near-term bullish trend, but a breakthrough the 23.6% FIB of $60 would certainly draw more interest. Litecoin struck a fresh 2019 high $58.87 on Friday.

The sizeable moves through the week saw Litecoin take back the number 4 spot from EOS, by market cap. Now up to number 7,  Bitcoin Cash is in its sights.

Binance Coin’s success story comes off the back of the launch of Binance Launchpad. Binance Coin has since been involved in fundraising events since the launch and there are more to come. With the ICO market continuing to be lackluster, Binance Coin will be looking to take over Ethereum’s number 2 spot.

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At the time of writing, Bitcoin was up by just 0.03% to $3,965.5. A relatively range-bound start to the day saw Bitcoin rise from a morning low $3,953.6 to a high $3,975.0 before easing back.

Moves through the early hours saw Bitcoin steer clear of the day’s major support and resistance levels.

For the day ahead

A hold onto $3,965.0 levels through the morning would support another run at the first major resistance level at $3,996.77. With Bitcoin continuing to hover at just shy of $4,000 levels, it’s now or down going into the weekend. A breakthrough to $4,000 levels would bring the second major resistance level at $4,029.13 into play before any pullback.

Failure to hold onto $3,965.0 levels could see Bitcoin hit reverse. A fall through the morning low $3,953.6 would bring the first major support level at $3,932.67 into play. Barring a broad-based crypto sell-off, we would expect Bitcoin to steer clear of sub-$3,900 levels ahead of the weekend.

In the event of a sell-off, the third major support level at $3,836.83 would likely prevent a slide back to $3,700 levels.