Bitcoin – Back in the Red, the Bears Looking for $3,500

It’s back in the red for the majors, with some tight ranges there to test sentiment ahead of the weekend.
Bob Mason

Bitcoin rose by 0.56% on Wednesday, partially reversing a 2.53% slide on Tuesday, to end the day at $3,673.6.

A bullish start to the day on Wednesday saw Bitcoin rally from an early morning intraday low $3,642.4 to a mid-day intraday high $3,759.9, breaking through the first major resistance level at $3,741.53, while continuing to fall short of $3,800 levels.

Reversing through the afternoon, Bitcoin eased back to a 2nd half of a day low $3,651 and into the red before finding support to move back through to $3,670 levels and into positive territory late in the day.

Bitcoin managed to avoid the day’s first major support level at $3,591.3, with the start of a day intraday low $3,642.4, a return to some relatively tight ranges keeping Bitcoin away from $3,500 levels for a 2nd consecutive day.

For the Bitcoin bulls, Monday’s 4.41% rally keeps Bitcoin in positive territory ahead of the weekend, though things could get testy for the more nervous investor should the tight ranges continue.

Across the broader market, it was green across the board for the top 10, with the total market cap rising to a mid-day high $123.36bn before easing back to $121bn levels, the bearish start to the year seeing the total market cap sit well off a 2019 high $138.6bn hit ahead of last Thursday’s crypto meltdown.

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At the time of writing, Bitcoin was down 0.46% to $3,656.6. A bearish start to the day saw Bitcoin slide from a morning high $3,683.6 to a morning low $3,630.0 before steadying. Moving with tight ranges yet again, Bitcoin came within range of the first major support level at $3,624.03, while falling well short of the first major resistance level at $3,741.53 in the early part of the day.

For the day ahead, a move through to $3,690 levels would support a run at $3,700 levels to bring the first major resistance level at $3,741.53 into play before any pullback. We would expect Bitcoin to continue to come up short of $3,800 levels to leave the second major resistance level at $3,809.47 out of play on the day.

Failure to move through to $3,690 levels could see Bitcoin take a slide later in the day, with a fall through the morning low $3,630.0 likely to see Bitcoin fall through the first major support level at $3,624.03 to call on sub-$3,600 support levels before any recovery, the bears looking to return Bitcoin to $3,500 levels.

Across the broader market, it was red for the top 10 cryptos, with Tron’s TRX seeing the heaviest losses through the morning, down 3.87% at the time of writing, with a solid start to the year seeing investors lock in some profits as Tron faces the prospects of a 6th day in the red out of the last 8.

On the news front, talk of Bitcoin ETFs have resurfaced, with the broader market having very little to go on as investors wait on the SEC’s decision on the 9 ETF applications under review. February is around the corner, but it remains to be seen whether there has been enough progress to support a favourable decision.

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