Bitcoin – Back in the Red, as the Bears Look for MoreIt’s back in the red for Bitcoin and the broader market, with Monday’s reversal weighing in the early hours. Holding onto $3,500 will be key early on.
Bitcoin fell by 3.27% on Monday, reversing most of Sunday’s 3.89% gain, to end the day at $3,523 in what sets up yet another bearish week.
In fact, you would have to go back to the week of 15th October to find the last time Bitcoin started off the week with a gain, quite a bearish run for Bitcoin and the broader market.
On the day, a positive start to the day saw Bitcoin rise to an early morning intraday high $3,709.7, falling short of the first major resistance level at $3,799.07, before hitting reverse alongside the broader market.
The sell-off saw Bitcoin fall to a late in the day intraday low $3,475.8, calling on support at the first major support level at $3,475.47, before recovering to $3,500 levels by the day’s end.
For the Bitcoin bulls, sub-$3,500 support was key to averting a return to $3,200 levels and raise the prospects of sub-$3,000 by the end of the week, with investors likely to be quick to jump ship in the event of a sharp slide in the coming days.
Uncertainty over where the bottom lies continues to limit inflows, with the stickier institutional money yet to really enter the crypto space due to the lack of appropriate regulatory oversight.
There was very little news to influence investor sentiment through the day, with the weekend’s gains likely spurring some selling activity and, when considering the fact that Bitcoin has not seen green on a Monday since 15th October, getting out on Monday was a reasonable move for the more conservative longs.
At the time of writing, Bitcoin was down 0.65% to $3,500.2, with Bitcoin easing from a start of a day morning high $3,526.1 to a morning low $3,480 before recovering, sub-$3,500 support yet again delivering for the Bitcoin bulls.
For the day ahead, a move back through the morning high $3,526.1 to $3,570 would support a run at $3,600 levels to bring the day’s first major resistance level at $3,663.2 into play, while will Bitcoin likely to struggle to break out from Monday’s $3,709.7 high in the event of a broad crypto based resistance breaking rally.
Failure to move back through the morning high could see more money come off the table, with a fall through the morning low $3,480.0 bringing the first major support level at $3,429.3 into play.
With sub-$3,500 support having been key at the turn of the week, a pullback to the low $3,400s could ultimately lead to another sell-off, and $3,300 levels would be on the cards should the day’s first major support level come into play.
Elsewhere in the crypto sphere, Bitcoin Cash ABC and Bitcoin CASH SV continued to be amongst the worst hit, with Bitcoin Cash ABC giving up its coveted number 5 market cap ranking to Tether, the hard fork also leading to a slide in Bitcoin Cash hash rates.
The Bitcoin Cash hash rate has fallen from a November high 7.8816E to just 1.174E, with miners jumping ship as the continued sell-off wipes out profitability, raising questions on whether the network can be supported going forward should transaction numbers pickup.
In contrast, Bitcoin has seen hash rates steady in spite of a downward trend that was to be expected with November and early December’s price action, hash rates easing back from a November high 60.4225E to a late November low $33.6641E before rising to 36.9347E on Monday.