Bitcoin – December Starts on a High, the Bulls Now in Need of Momentum

Bitcoin gained 5.02% on Saturday, reversing most of Friday’s 6.56% slide, to end the day at $4,241.3, the recovery taking Bitcoin into positive territory for the current week.

Friday’s reversal continued into the early hours of Saturday, with Bitcoin falling to a mid-morning intraday low $3,964.5, before finding support, the first major support level at $3,870.07 left untested on the day.

A late morning broad based cryptomarket weekend rally of old was needed to pull Bitcoin back through to $4,000 levels, with Bitcoin breaking through the first major resistance level at $4,288.87 to a late afternoon intraday high $4,340 before easing back to $4,200 levels.

For the Bitcoin bulls, support at sub-$4,000 levels has been key over the last 2-days, with a sharp rebound on Saturday morning reflective of the volatility that has returned to the cryptomarket of late, the issue being a lack of direction, with gains being met with losses and vice versa.

Unsurprisingly, there is some investor caution following a particularly dire November, with early profit taking to be expected that could ultimately pin Bitcoin back from a breakout near-term.

The  news wires are unlikely to deliver anything too market positive, with the SEC expected to sit on its hands over the Bitcoin ETF decision, the only possible positive being a ruling by the U.S Department of Justice that there had been no price manipulation during the late 2017 rally that saw Bitcoin come up shy of $20,000 levels.

The cryptomarket’s total market cap recovered to $139.2bn, supported not only by Bitcoin’s recovery, but more significant gains for Litecoin and Cardano’s ADA, with Ethereum managing to close the gap on Ripple’s that continues to hold the number 2 spot.

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At the time of writing, Bitcoin was down 0.04% to $4,239.4, with a bullish start to the day seeing Bitcoin rise to a morning high $4,369.8 before hitting reverse, the day’s first major support level at $4,399.37 left untested early on.

For the day ahead, holding onto $4,200 levels through the morning will be key to support a second weekend rally, with a break through to $4,300 levels bringing the day’s first major resistance level at $4,399.37 and $4,400 levels into play.

The Bitcoin bulls are in dire need of momentum to break clear of sub-$4,000 levels that leaves a lingering possibility of a reversal to sub-$3,000 levels.

Failure to hold onto $4,200 levels could see Bitcoin cough up Saturday’s gains, with a fall through to $4,100 levels bringing the day’s first major support level at $4,023.87 into play before any recovery, though much will depend upon the broader market on whether Bitcoin will once again test sub-$4,000 support levels that have kicked in at the right time till now.