Bitcoin – Back into the Tight Ranges. We’ve Been There Before…Bitcoin’s struggles at $3,600 hit a 3rd day, with resistance pinning Bitcoin back in the early hours. We’ve seen tight ranges end in disaster for the bulls.
Bitcoin slipped by just 0.19% on Monday, following on from a 4.7% slide on Sunday, to end the day at $3,579.4.
A relatively range bound day, synonymous with recent market sell-offs, left Bitcoin at $3,500 levels by the day’s end for a 2nd consecutive day, as the bears continued to dictate the markets, evidenced by Sunday’s reversal.
Recovering from a morning low $3,555.3, Bitcoin managed to break through to $3,600 levels and strike an early afternoon intraday high $3,620.1 before sliding back, resistance at $3,600 pinning Bitcoin back from any run at $3,700 levels and the day’s first major resistance level at $3,741.0.
A late in the day intraday low $3,548.3 saw Bitcoin steer clear of the day’s first major support level at $3,487.10 and, of greater significance, sub-$3,500 levels that were last visited back on 17th December.
While Bitcoin saw red on the day, a move that tends to spell trouble for the week ahead, a number of the top 10 cryptos saw green, with 2019’s trailblazer Tron rallying by 7.90% to lead the way. While in the green, Ripple’s XRP and Litecoin’s less than 1% gains on the day were insignificant, as Tron continues to draw attention following recent news of its platform successes.
On the downside, Stellar’s Lumen had the heaviest losses, down 1.73% for the day, with Bitcoin Cash ABC and Ethereum not far behind, the pair down 1.65% and 1.35% respectively.
For Ethereum, news of the delayed system upgrade from 17th January being rescheduled for 27th February failed to spur a rebound through the day, the upgrade named Constantinople having been developed to shift Ethereum’s consensus algorithm from Proof-of-Work to Proof-of-Stake.
As Proof-of-Stake is considered to be more energy efficient, transaction fees are anticipated to be lower, which would be Ethereum positive. Another positive, from a price perspective, is the team’s decision to leave out the EIP1283 that had been discovered to be faulty, leading to the delay.
At the time of writing, Bitcoin was up 0.07% to $3,581.9, with moves through the early morning seeing Bitcoin rise from a start of a day morning low $3,579.3 to a morning high $3,611.0 before easing back.
Steering clear of the first major support level at $3,545.10, Bitcoin came within range of the first major resistance level at $3,616.90 before sliding back to sub-$3,600 levels, Bitcoin struggling at $3,600 following Sunday’s sell-off.
For the day ahead, a move back through to $3,590 levels would support another run at the first major resistance level at $3,616.90, with support from the broader market needed for Bitcoin to take a run at the second major resistance level at $3,654.4. Monday’s high $3,620.1 and the bearish sentiment across the broader market will likely pin Bitcoin back on the day, to leave $3,700 levels out of play, in the event of a rally.
Failure to move back through to $3,590 levels could see Bitcoin hit reverse later in the day, a pullback through the morning low $3,579.3 bringing the day’s first major support level at $3,545.10 into play. Barring a major crypto sell-off, we would expect Bitcoin to steer clear of sub-$3,500 levels, with the second major support level at $3,510.80 there to prevent heavier losses in the event of a reversal.