Bitcoin – Bulls Fight Back, but Can They Hold on?

Bitcoin moves back into the red early on, with a hold onto $4,000 levels key for the Bitcoin bulls through the weekend.
Bob Mason
Bitcoin Crash

Bitcoin surged by 8.69% on Friday, reversing a 5.55% slide on Thursday, to end the day at $4,036.7, the day’s gain leaving Bitcoin down just 0.88% for the current week.

A relatively range bound morning saw Bitcoin ease to a mid-morning intraday low $3,696.3, holding above the first major support level at $3,609.07 before moving through to $3,700 levels.

While the avoidance of sub-$3,600 levels eased fears of a slide through to sub-$3,000 levels over the weekend, it was an afternoon rally, seen across the broader cryptomarkets that delivered a bullish 2nd half of the day.

Bitcoin rallied to a late afternoon intraday high $4,095, the move seeing Bitcoin break through the first major resistance level at $3,891.87 and second major resistance level at $4,071.73, while being pinned back from a break through to $4,100 levels on the day.

Elsewhere, Ethereum, EOS, IOTA and Bitcoin Cash ABC were the leaders of the pack on the day, with Ethereum avoiding a pullback to sub-$100 levels.

The broad based cryptomarket rally saw the total market cap jump by more than $8bn in under an hour to hit $133bn levels before easing back to $132.03bn by the day’s end.

Bitcoin’s dominance held onto 52% levels on the day, in spite of the broad based crypto rally, with a number of the majors still in the red for the current week following Friday’s bounce back.

The moves through the day were not too dissimilar to those seen in the U.S equity markets this week, with no material news driving Bitcoin and the broader market through the day.

For the Bitcoin bulls, the next target will be a break through the 23.6% FIB Retracement Level of $4,816 to bring $5,000 levels into play, a failure to break out from $4,000 likely to test investor sentiment through the weekend into the New Year.

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At the time of writing, Bitcoin was down 0.22% to $4,027.8, with a relatively range bound start to the day seeing Bitcoin rise to a morning high $4,073.7 before easing to a morning low $4,016.1, the day’s major support and resistance levels left untested early on.

For the day ahead, a hold onto $4,000 levels will be key for the Bitcoin bulls and the broader market, with a move back through the morning high $4,073.7 bringing $4,100 levels and the first major resistance level at $4,189.03 into play, more material gains unlikely barring another major crypto rally.

Failure to hold onto $4,000 levels could see Bitcoin pullback to $3,800 levels to bring the first major support level at $3,790.33 into play before any recovery, the day’s second major support level at $3,543.97 unlikely to be in play, whilst $3,600 levels could be visited should sentiment across the broader market fail to improve through the day.

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