Bitcoin – Can Bitcoin Recover to $3,800 or is a Reversal on the Cards?It’s a positive start to the day, though resistance at $3,800 continues to cause problems for the bulls, Bitcoin unable to break free.
Bitcoin gained 2.36% on Saturday, reversing a 1.26% fall from Friday, to end the day at $3,762.3.
A 4th day in the green gave Bitcoin a 4.77% rise for the current week, as the bulls look to cut the deficit from the previous week and the start of the year, Bitcoin still down 1.83% since the beginning of the year.
Through the early part of the day, a broad based crypto rally supported a move from a start of a day intraday low $3,673.9 to a late morning intraday high $3,882 before easing back.
Breaking free of the recently tight ranges, Bitcoin broke through the day’s major resistance levels, whilst holding above the major support levels on the day. While giving up $3,800 levels, struck for the first time since the 10th January meltdown, Bitcoin managed to close out the day above the second major resistance level at $3,755.5.
Failing to hold onto $3,800 levels will be an issue however, with investors quick to lock in profits, reflecting mixed sentiment towards the near-term outlook for Bitcoin and the majors.
For the crypto bulls, Litecoin led the way on the day, rallying by 4.1%, closely following by Ethereum, which gained 3.04%. Bucking the trend across the top 10 cryptos on the day was Tron’s TRX, which fell by 0.61%, the 2019 front runner treading water after some hefty gains in recent weeks.
The broad based crypto rally wasn’t enough to drive the crypto market cap back through to $130bn levels, with the market cap sitting at $124.25bn at the time of writing.
On the news front, the markets were able to brush aside news of the effects of the government shutdown on the SEC’s ongoing review of the 9 Bitcoin ETF application rejections. VanEck talked optimistically about their ETF submission, stating that the necessary ground work has been done to ensure the appropriate structure is in place to support an approval.
Litecoin’s rally, which contributed to the broader gains on the day, came off the back of news of Coingate adopting Litecoin’s Lightening Network to process crypto payments. Back in December, Coingate had announced a plan to introduce 1,000 merchants, who would accept Litecoin payments over the Lightening Network. With an existing 4,000 accepting Bitcoin, it’s a big step in terms of Litecoin adoption. The question will be whether Litecoin adoption can really eat into that of Bitcoin’s to give Litecoin a run at a top 5 ranking.
Having lost out to Tether in the January 10th meltdown, Litecoin now sitting at number 8 by market cap, the Saturday rally gave Litecoin some breathing space following Tron’s trend bucking loss on the day.
At the time of writing, Bitcoin was up 0.34% to $3,775.0, with a relatively bullish start to the day seeing Bitcoin rise from a morning low $3,750.2 to a morning high $3,796.9 before easing back.
For the day ahead, a hold above $3,770 would support another run at $3,800 levels to bring the day’s first major resistance level at $3,871.57 into play before any pullback. For the bulls, a move back through to $3,800 levels would likely raise the prospects of a near-term return to $4,000 levels, though support from the broader market would be needed and the news wires would need to be crypto friendly.
Failure to hold above $3,770 could signal the beginnings of a reversal back through to $3,500 levels, the day’s first major support level at $3,663.47 unlikely to give Bitcoin too much support in the event of a sell-off.