Bitcoin Bears take Control, as the Cryptomarket Heads South

It was never going to be great for Bitcoin to be stuck in a rut and in the end investor patience wore thin, which led to Bitcoin sliding 5.92% to $10,741.99 on Tuesday.

A late slide on Monday that left Bitcoin in the red for the day, had weighed on Bitcoin through Tuesday, with a continued failure to make a run at $12,000 levels ultimately shifting sentiment towards Bitcoin later in the day.

While Tuesday morning saw Bitcoin hold on, having hit a week high $11,688 on Monday, by the middle of the day Bitcoin was on the slide and fell through its major support levels on the day to a Tuesday intraday low $10,560.19.

The only consolation for the Bitcoin bulls was the fact that Bitcoin was able to move back above its 3^rd major support level of $10,670 by the close, though we don’t expect this to provide too much comfort.

Bitcoin ultimately found buyers at $10,709.83, its 38.2% FIB Retracement Level, though a failure to move back through to its 23.6% FIB Retracement Level of $11,052.34 maintained the bearish trend that was formed late in the day on Monday.

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Things have not improved this morning, with a choppy start to the day seeing Bitcoin up just 0.07% to $10,730.92.

Bitcoin continues to hover around its 38.2% FIB Retracement Level of $10,709.83 and a failure to break back through to $11,000 levels this morning and its 23.6% FIB Retracement Level of $11,052 will likely support the recent bearish trend that was formed on Monday.

For the day ahead, a fall through to $10,500 levels could see Bitcoin test its first major support level of $10,395. If sentiment in the markets doesn’t improve through the middle part of the day, a slide to its 62% FIB Retracement Level of $10,156 will bring sub-$10,000 levels back into play for the first time since 27^th February’s $9,376.34 low.

Looking across at the Cboe Bitcoin futures, the March contract was down $75 to $10,660, which has contributed to the lack of appetite through the early part of the day.

With an early move through to an intraday high $10,911.78, having reversed, a move back through to $10,900 levels could see Bitcoin make another run at $11,000, though based on current sentiment and the bearish trend formed, there may be more downside to come before any recovery, with investors likely to sit on the side lines waiting for a more attractive entry price.

Things were no better elsewhere in the cryptomarket this morning, with none of the cryptocurrencies in positive territory at the time of writing.

Ethereum was the worst performer this morning, down 2.93%, with Cardano and NEM’s XEM also seeing heavy losses.

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