Bitcoin – Bears Look to Recover from a Bad Start to 2019Bitcoin kicks off the 2nd day of the year in the red, with another failure to break through to $4,000 levels likely to weigh later in the day.
Bitcoin gained 3.4% on Tuesday, reversing a 3.72% loss from the end of 2018, to end the day at $3.963.1, with Bitcoin failing to break through to $4,000 levels for a 2nd consecutive day.
Relatively range bound through much of the day, Bitcoin recovered from an early morning low $3,810.2 to an early afternoon high $3,894.9 before hitting reverse to strike a late afternoon intraday low $3,788.1.
Steering clear of the day’s first major support level at $3,738.70, Bitcoin rallied to a late in the day intraday high $3,987.00, breaking through the first major support level at $3,954.60, while falling short of $4,000 levels and the first major resistance level at $4,078.70.
For the Bitcoin bulls, $4,000 continues to be the line in the sand, with Bitcoin now having failed to close out at $4,000 levels for a 4th consecutive day and for a 7th day in the last 8.
There was no material news across the crypto wires at the start of the year to support the late in the day rally, with price forecasts for the year ahead taking most of the headlines, the main issue for Bitcoin and the broader market being the extended bearish trend that remains intact going into the New Year.
Across the majors, Binance Coin was the only top 20 coin to see red at the start of the year, while Bitcoin Cash ABC led the way, rallying by 9.7% on Tuesday, Bitcoin Cash SV a distant second with an 8.26% Gain.
With Bitcoin’s dominance down at 51.6% and the total crypto market cap rising back to $129.95bn, it was the start of the year that Bitcoin and the broader market needed, though with Bitcoin still languishing at sub-$4,000 levels, the bulls will have their work cut out to maintain the upward momentum through the week, even with the news wires being relatively crypto friendly.
At the time of writing, Bitcoin was down 0.2% to $3,955.3, with a start of a day morning high $3,980.2 coming up short of the first major resistance level at $4,037.37 and more importantly $4,000 levels, to ease back to a morning low $3,938.6 before steadying, Bitcoin steering clear of the first major support level at $3,838.48 early on.
For the day ahead, a hold above $3,910 levels through the morning would support a move back through the morning high $3,980.2 to take a run at $4,000 levels and the first major resistance level at $4,037.37, with support from the broader market needed for Bitcoin to attempt a breakout to bring $4,100 levels into play later in the day.
Failure to hold above $3,910 levels through the morning could see Bitcoin take a bigger hit later in the day, with a fall through to $3,800 levels bringing the first major support level at $3,838.47 into play before any recovery, sub-$3,800 support levels unlikely to be tested barring a broad based crypto sell-off later in the day.