Bitcoin – Bulls Defy Crypto Gravity, as the Altcoins Sink

Bitcoin back in the red, but with minor losses relative to the broader market, a move back to $6,300 levels likely to deliver a trend bucking gain.
Bob Mason
Bitcoins etf

Bitcoin slipped by just 0.36% on Tuesday, partially reversing Monday’s 1.44% gain, to end the day at $6,292.2.

A relatively bullish start to the day saw Bitcoin strike an early morning intraday high $6,399.6 before hitting reverse, the day’s high seeing Bitcoin come up against the first major resistance level at $6,396.13 to pin Bitcoin back from a move through to $6,400 levels for the first time since Sunday.

The morning slide saw Bitcoin fall through the day’s first major support level at $6,241.43 to an early afternoon intraday low $6,170 before finding support, with Bitcoin managing to recover to $6,300 levels late in the day before easing back to $6,200 levels, the afternoon recovery cutting Bitcoin’s loss for the day to just 0.36%.

With the broader market seeing significantly heavier losses through the start of the week, Bitcoin’s dominance has continued to creep up, currently sitting at 57.5%, with Bitcoin having last breached 60% back in December ahead of the major cryptos rallying to record highs.

Hitting a 60% dominance level would be quite a landmark for a crypto that continues to find support from miners, transaction times and fees leaving Bitcoin with little chance of becoming the true cryptocurrency alternative to fiat money.

Negative news hitting the wires did the damage once more for the cryptomarket, with a court ruling in the U.S that ICOs are covered by Securities Laws weighing, the latest news coming off the back of the SEC ruling on the banning of two Bitcoin trading vehicles. Whether the court ruling on the classification of ICOs will be withheld remains to be seen, with there being a case for functionality to dictate classification.

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At the time of writing, Bitcoin was down 0.33% to $6,270.3, the losses through the early morning being minor relative to the broader market, Bitcoin’s resilience evidenced with a continued hold on to $6,000 levels in spite of the cryptomarket’s total market cap sitting at sub-$190bn levels for the first time since November of last year.

A continuation of Tuesday’s late in the day reversal saw Bitcoin fall from a start of a day morning high $6,296.1 to a morning low $6,218.3 before support kicked in, the moves through the early hours leaving the day’s major support and resistance levels left untested.

For the day ahead, a move back through to the morning high $6,296.1 would bring $6,300 levels into play, while we would expect Bitcoin to fall short of the day’s first major resistance level at $6,404.53 barring materially positive crypto news hitting the wires, recent rulings and decisions by regulators having all been a negative for Bitcoin and the broader market.

Failure to move back through the morning high $6,296.1 to $6,300 levels could see Bitcoin pullback through the morning low $6,218.3 to $6,100 levels to bring the day’s first major support level at $6,174.93 into play.

The bears will continue to be eyeing sub-$6,000 levels and with the EU finance minister gathering tomorrow, there could be more losses to come, the only question being whether Bitcoin will buckle and catch up with the broader market or continue to defy crypto gravity.

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