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Bitcoin – Bears Target $3,700 to bring sub-$3,000 Levels back into Play

Bitcoin’s going to need to hold onto $3,800 levels to avoid a bigger sell-off, the bears looking to end the year with a bang.
Bob Mason
Bitcoin Board

Bitcoin gained 0.52% on Wednesday, following a 5.58% slide on Tuesday, to end the day at $3,930, in what was a mixed day for the cryptomarket, a number of the majors seeing red on the day.

A relatively bullish start to the day saw Bitcoin rise to an early morning intraday high $3,990, falling short of the first major resistance level at $4,105.77 and, more importantly, $4,000 levels for the first time since 18th December, before hitting reverse.

Falling through the morning, Bitcoin slid to an early afternoon intraday low $3,812.1 before finding support to move back through to $3,900 levels. Bitcoin managed to steer clear of the first major support level at $3,762.87 on the day.

In spite of last week’s impressive rallies across the majors, the bearish talk has resumed, with Bitcoin having been unable to breakout to $5,000 levels to support a shift in sentiment across the broader market going into the New Year.

The bears will be looking for a pullback to $3,700 levels to take another run at sub-$3,000 levels and much will depend on the news wires over the next 5-7 days, any thefts or fraudulent activity likely to hit Bitcoin and the broader market hard.

For now, Bitcoin’s start of the week gain looks to have been a false start for the Bitcoin bulls, though with volumes expected to be on the rise in the coming days, the weekend could be an altogether different story should Bitcoin manage to avoid a fall through to $3,700 levels.

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At the time of writing, Bitcoin was down 1.53% to $3,870, with Bitcoin falling from a morning high $3,968.8 to a morning low $3,848.7 before finding support, the day’s major support and resistance levels left untested early on in the day.

With sentiment across the broader market having deteriorated since Monday’s gains, Bitcoin’s struggle to move back through to $4,000 levels could weigh later in the day, the bulls needing to move through to $3,910 levels by the early afternoon to support a run at $4,000 levels and the first major resistance level at $4,009.3.

Failure to move back through to $3,900 levels could see Bitcoin slide back through the morning low $3,848.7 and the first major support level at $3,831.4 to $3,700 levels before any recovery, the day’s second major support level at $3,732.8 there to prevent heavier losses on the day.

The market’s got that bearish feeling again, with Bitcoin’s dominance creeping up to 51.8% and the crypto total market cap easing to $127.99bn.

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