Bitcoin – Bulls Look to Bring $4,000 Levels Back into Play

Bitcoin sees early gains but will need to break through the first major resistance level to bring $4,000 levels into play…
Bob Mason
Bitcoin symbol in blockchain technology and cryptocurrency concept. Abstract background 3d illustration.

Bitcoin gained 0.12% on Tuesday. Partially reversing a 1.13% fall from Monday, Bitcoin ended the day at $3,954.1.

A bearish start to the day saw Bitcoin slide to an early morning intraday low $3,895.2 before finding support.

The early sell-off saw Bitcoin slide through the first major support level at $3,912.67 to come within range of the second major support level at $3,871.83.

A late morning rebound saw Bitcoin bounce back to $3,970 levels and an early afternoon intraday high $3,979.5.

The early afternoon high fell short of the day’s first major resistance level at $4,001.77. The failure to break back through to $4,000 levels left Bitcoin within a $40 range through the 2nd half of the day.

Elsewhere

Across the top 10 cryptos, it was a sea of green across the board, though some fared better than others. Leading the majors on the day was Binance Coin, which rallied by 6.26% on Tuesday. Following last Thursday’s new swing hi $15.91, a pullback to $13 levels on Friday tested investor resolve ahead of Tuesday’s bounce back.

Demand for Binance Coin comes off the back of the fundraising platform, which continues to provide support. Binance Coin remains the only top 10 cryptos to have formed a bullish trend.

While Binance stole the show, Litecoin managed to find its feet following Monday’s sell-off. A start of the week pullback left Litecoin well short of the 23.6% FIB of $60. The extended bearish trend, formed back at early May’s swing hi $182.35 remains intact in spite of the upward momentum in recent weeks.

Trailing the majors through the day were Ripple’s XRP and Ethereum, the pair seeing less than 1% gains on the day.

There were no major news events to provide direction throughout the day. Bitcoin’s failure to breakout from $4,000 capped the upside for the broader market in the early part of the week.

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At the time of writing, Bitcoin was up by 0.3% to $3,965.8. A relatively bullish start to the day saw Bitcoin rise from a morning low $3,952.1 to a morning high $3,967.5. Moves through the early morning saw Bitcoin leave the major support and resistance levels untested.

For the day ahead

A hold above $3,945 levels through the morning would support a run at the first major resistance level at $3,990.67 before any pullback. Support from the broader market would be needed for Bitcoin to breakthrough to $4,000 levels. Barring a broad-based crypto rally, however, we would expect the second major resistance level at $4,027.23 to be left untested.

Failure to hold above $3,945 levels could see Bitcoin fall through the first major support level at $3,906.37 to $3,800 levels before any recovery. Barring a broad-based crypto sell-off, however, we would expect Bitcoin to steer clear of the second major support level at $3,858.63.

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