Bitcoin – Back in the Red. Holding onto $4,000 will be Key

It’s back in the red for Bitcoin. The bulls have managed to avoid the day’s major resistance levels early on. A return to $4,100 levels would be the answer.
Bob Mason
Bitcoin, Ethereum, Litecoin Digital cryptocurrencys on a notebook

Bitcoin gained 2.12% on Saturday. Following on from a 1.38% rise on Friday, Bitcoin ended the day at $4,088.0.

A bullish start to the day saw Bitcoin rally to an early morning intraday high $4,166.8 before easing back. The early move saw Bitcoin break through the day’s major resistance levels before easing back to sub-$4,100 levels. Bitcoin pulled back through the third major resistance level at $4,112.73 to a relatively range-bound afternoon.

For the bulls, a hold above the second major resistance level at $4,050.13 was key. Of greater significance would have been a second consecutive hold onto $4,000 levels. Looking back at the moves since the beginning of the year, Bitcoin has only managed to hold onto $4,000 levels beyond a 2nd consecutive day on two occasions. On both occasions, the hold stretched to a 4th consecutive day before Bitcoin hit reverse.

A breakout to $4,500 levels would likely give the Bitcoin bulls a more extended run. Bitcoin last sat at $4,500 levels back in late November of last year, which was in the midst of a sell-off from $6,000 levels.

For the current week, Bitcoin was up by just 2.24%, with tight ranges in the earlier part of the week capping Bitcoin’s gains.


Across the top 10 cryptos, it was a sea of green on Saturday. Leading the way on the day was Bitcoin Cash ABC, which gained 8.27% and Binance, up 6.96%.

Bringing up the rear was Ripple’s XRP, which rose by just 1.33% and Tron’s TRX, which gained 1.23%.

Binance was up by 10.96%, Monday through Saturday, while Stellar’s Lumen was up by 7.55%. It’s been a good run for Stellar’s Lumen this month. A logo alone, however, is not expected to support an extended run.

Leading the way for the current week was Bitcoin Cash ABC, which surged by 18.2%. A 2nd consecutive day of 8% plus gains on Saturday led Bitcoin Cash ABC to levels not seen since a brief visit in late February.

The broad-based crypto rally saw the market cap rise to a high $141.47bn on Saturday before easing to $139.98bn at the time of writing.

While there were no major news events to support the latest rally, a jump in volumes supported the upward momentum. Crypto trading volumes hit 35bn levels on Saturday. Earlier in the year, volumes were at as low as 14bn levels. The bullish sentiment was reflected in Bitcoin’s dominance levels, which was down at sub-51% levels.

Get Into Cryptocurrency Trading Today

At the time of writing, Bitcoin was down by 1.03% to $4,046.1. Bearish through the early hours, Bitcoin fell from a morning high $4,089.8 to a low $4,041 before steadying. In spite of the pullback, Bitcoin held above the first major support level at $4,005.13.

For the day ahead

A move back through to $4,085 levels would support a recovery of the morning losses and a return to $4,100 levels. Support from the broader market would bring the first major resistance level at $4,168.83 into play. We would expect Bitcoin to face plenty of resistance on any run through to $4,100 levels on the day. In the event of a breakout, the bulls will be eyeing a move through to $4,200 levels.

Failure to move back through to $4,085 could see Bitcoin give up more of the week’s gains. A fall through the morning low $4,041 would bring the first major support level at $4,005.13 into play. A sustained sell-off through the day and Bitcoin could be back at sub-$4,000 by the day’s end. In the event of a sell-off, we would expect the second major support level at $3,922.27 to be left untested.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.