Bitcoin – Bears Hit $3,500. Next Target will be $3,200It’s a positive start to the week, but it’s early and, with the bears in control, a failure to break through to $3,700 levels could weigh later in the day.
Bitcoin slid by 3.00% on Sunday, following on from a 0.36% fall on Saturday, to end the week down 13.9% at $3,591, its lowest end of day price since 16th December.
Relatively range bound through the morning, Bitcoin hit a mid-day intraday high $3,729 to come within range of the first major resistance level at $3,735.13 before hitting reverse.
Selling pressure from the broader market ultimately weighed, with Bitcoin sliding to a late afternoon intraday low $3,570.
The reversal saw Bitcoin fall through the first major support level at $3,667.73 and second major support level at $3,633.47 to come within range of the third major support level at $3,566.07.
Finding support at $3,500 levels and the third major support level, Bitcoin managed to avoid heavier losses on the day, while some of the other crypto majors slid deeper in the red on the day.
Looking across at the other members of the top 10, Ethereum was amongst the worst performers of the week, down 25.9%, with Bitcoin Cash ABC and EOS close behind, the pair down by 24.7% and by 22.4% for the week.
Relative to the broader market, Tron was amongst the top performers, losing just 8.63% in the week, with Ripple’s XRP and Stellar’s Lumen also seeing relatively modest losses of 14.6% and 16.2% respectively.
The bearish end to the week left the crypto total market cap down at $117.58bn, with Bitcoin’s dominance creeping up to 52.9%, a bearish signal for the cryptomarket.
A negative start to the week was a bad omen for Bitcoin and the broader market, Monday’s fall leading on to 6 days in the red for Bitcoin in the week, a 0.05% gain on Friday the highlight of the week for the bulls.
At the time of writing, Bitcoin was up 0.48% to 3,608.4, a positive start to the day seeing Bitcoin rise from a morning low $3,580 to a morning high $3,615.0 before easing back.
While moves through the early morning left the day’s major support and resistance levels untested, a break back through to $3,600 was a positive early on.
For the day ahead, a move through to $3,630 levels would support a run at the first major resistance level at $3,690 to bring $3,700 levels into play before any pullback. Sunday’s high $3,729 and investor wariness will likely pin Bitcoin back from a run at the second major resistance level at $3,780.0.
Failure to move through to $3,630 could see the bears take back control at the start of the week. A fall through the morning low $3,580 will likely bring the first major support level at $3,531.0 into play, with sub-$3,500 support levels in play in the event of a broad based crypto reversal later in the day.
For the Bitcoin bulls, closing out in positive territory at the start of the week will be key. In recent months, a red start to the week has tended to weigh through the week.
Across the broader market, Bitcoin Cash ABC and IOTA bucked the trend early on in the day, the pair down by 0.74% and by 1.27% respectively, while Tron was back on the move, up by 7.35% to lead the top 10 early on in the day.