Bitcoin – Bears in Control as the Year Comes to an End

It’s back in the red for Bitcoin and how the year ends could be a signal of just what’s to come through the early part of New Year.
Bob Mason
bitcoin volatility

Bitcoin gained 2.14% on Sunday, partially reversing a 3.54% fall on Saturday, to end the day at $3,977.3.

A bullish start to the week failed to deliver another cryptomarket rally off the back of the previous week’s 23.4% gain, with Bitcoin ending the week down 2.34% and of greater significance, back at sub-$4,000 levels.

Following a late in the day sell-off on Saturday, Bitcoin fell to a start of a day intraday low $3,838.9, holding above the day’s first major support level at $3,802.3 before finding support.

There were no fireworks through the day, with Bitcoin only managing a move through to a mid-day intraday high $4,003.8 before easing back, with sub-$3,900 support holding Bitcoin back from a slide back to $3,800 levels.

The moves through the day saw Bitcoin come within range of the first major resistance level at $4,042.70 and the first major support level at $3,802.3.

For the Bitcoin bulls a run at $5,000 levels was needed before the year was out to shift the negative sentiment that has plagued Bitcoin and the broader market since the return of crypto volatility in late October.

Failing to hold onto $4,000 levels in the week will continue to raise doubts over whether Bitcoin has bottomed out or is about to get hit by another sell-off that would deliver the widely predicted sub-$3,000 floor.

The bearish sentiment has seen Ethereum close the market cap gap on Ripple’s XRP, with Ethereum looking ripe to retake the 2nd spot, though much will depend on the Token Taxonomy Act, a recovery in the ICO market only a good thing for Ethereum that has struggled over the year.

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At the time of writing, Bitcoin was down 1.75% to $3,907.9, with moves through the early morning seeing Bitcoin slide from a start of a day morning high $3,986.9 to an early morning low $3,873.4, Bitcoin calling on support at the first major support level at $3,876.2, whilst falling short of $4,000 levels and the first major resistance level at $4,041.1.

For the day ahead, a hold onto $3,900 levels through the morning would support a move through the morning high to bring $4,000 levels and the first major resistance level at $4,041.1 into play, with sentiment across the broader market to play a hand in how Bitcoin closes out the day.

Early moves and a failure at the start of the day for Bitcoin to break through to $4,000 levels will likely weigh through the morning.

Failure to hold onto $3,900 levels through the morning could see Bitcoin slide back through the morning low $3,873.4 to bring $3,700 levels and the second major support level at $3,775.1 into play before any recovery.

The way the year is coming to a close, it could be a tough start to 2019 and if there’s no good news from regulators, it may be more than just a tough January.

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