Bitcoin – At sub-$4,000 Levels, with more Red on the BoardBitcoin on the slide through the weekend, with a new swing lo this morning giving the bears control in what is another week of heavy losses.
Bitcoin tumbled by 11.14% on Saturday, reversing Friday’s 1.19% gain, to end the day at $3,929.9, levels that were last visited back in September of last year, which came amidst Bitcoin’s extended bull run that led to just shy of $20,000 levels in mid-December.
While the bull run is being investigated by the U.S Department of Justice, few will be investigating this year’s bear run, with Bitcoin seeing its market cap slide to a lowly $66.7bn, quite a fall from an all-time high $327.15bn.
A second consecutive week of heavy losses has seen the cryptomarket’s total market cap plummet to $124.5bn, down from a January all-time high $813.87bn.
Bitcoin’s reversal came late in the day, with Bitcoin sliding through the first major support level at $4,256.8 and second major support level at $4090.9 to an intraday low and new swing lo $3,819.4 before finding support at the third major support level at $3,805, with Saturday’s sell-off leaving Bitcoin down a whopping 30.56% for the week.
For the Bitcoin bears, the Bitcoin slide has been an impressive one, with Bitcoin having given up $5,000 levels and $4,000 levels in less than a week, those having missed the volatile days of old likely to be wishing for some respite from the latest sell-off.
How far this market has left to fall remains to be seen and there’s certainly no reason for the pullback to come to an end anytime soon, the only question being whether Bitcoin can really fall back to $1,000 levels and whether that will draw in buyers on hopes of a rerun of last year’s rally to $19,000 levels.
The pro-crypto camp have been suggesting that there is sufficient value in Bitcoin to justify a rebound, but when considering the limited adoption of Bitcoin as an alternative to fiat money, some will be preferring to hold the likes of the Dollar right now and, while we may see the odd upside, investors may be looking to lock in gains ahead of another sell-off that may or may not be news driven, which should cap any near-term gains.
At the time of writing, Bitcoin was down 4.32% to $3,760, with Bitcoin falling from a start of a day high $3,975 to a morning low $3,737, the moves through the early part of the day leaving the day’s major support and resistance levels left untested early on.
For the day ahead, a move back through the morning high $3,975 would support a move back through to $4,000 levels, while we would expect Bitcoin to fall short of the first major resistance level at $4,366.13, with the bears in firm control through the week.
Failure to move back through the morning high $3,975 would likely see Bitcoin’s negative bias remain, with a pullback through the morning low $3,737 bringing $3,600 levels and the day’s first major support level at $3,656.53 into play before any recovery, with uncertainty over where the bottom is likely to weigh on investor sentiment through the day.