Bitcoin – From Meltdown to MillpondIt’s a testy start to the day for Bitcoin and the broader market, with Bitcoin needing to hit key levels by late morning to avoid another sell-off.
Bitcoin gained 0.05% on Friday, following on from Thursday’s 9.07% slide, to end the day at $3,714.8.
While a 5th consecutive day in the red as averted, Bitcoin was left down 10.9% for the current week, with even a weekend rally of old unlikely to be able to reverse the week’s losses.
Relative to recent moves, it was a particularly range bound day for Bitcoin, in spite of new highs and lows through the day, Bitcoin managing to hold on following Thursday’s sell-off, while some of the other majors continued to struggle, investors wary of heavier losses and quick to hit the panic button.
Rising from a morning low $3,691, Bitcoin managed to strike a late morning intraday high $3,777.8 before easing back, the day’s major support and resistance levels left untested in the early part of the day, with Bitcoin having needed to break through to $3,800 levels to support a run at $4,000 levels.
Range bound through the middle part of the day, investors were provided with little comfort, the lack of a post sell-off bounce back leading investors to pulingl out late in the day, with Bitcoin falling to a late in the day intraday low $3,666.6 before steadying, the day’s first major support level at $3,552.23 left untested.
Moves through much of the day had seen the major cryptos steady from Thursday’s reversal, but the late in the day pullback was broad based and weighed most heavily on Litecoin, Bitcoin Cash ABC and 2019 favorite Tron.
It wasn’t all doom and gloom, with a couple of the majors managing to recover some of Thursday’s losses, NEM’s XEM up 3.86% and Monero’s XMR, IOTA and Binance Coin also in positive territory
At the time of writing, Bitcoin was back in the red in the early hours, down 0.2% to $3,707.2, with early moves seeing Bitcoin fall from a start of a day morning high $3,730 to a morning low $3,692.3 before steadying, the day’s major support and resistance levels left untested early on.
For the day ahead, a move through the morning high $3,730 would support a run at the first major resistance level at $3,772.87 to bring $3,800 levels into play before any pullback, Bitcoin likely to come up short of the second major resistance level at $3,830.93 on the day, barring a broad based crypto rally.
Failure to move back through the morning high $3,730 could see Bitcoin pullback through the morning low $3,692.3 to call on support at the first major support level at $3,661.67, with any negative sentiment across the broader market likely to bring the second major support level at $3,608.53 into play before any recovery.
A mixed start to the morning, across the broader market, will likely test investor resolve later in the day should Bitcoin fail to find its feet, with investors still sensitive to Thursday’s sell-off and all too conscious of who quickly the market can reverse, particularly after some range bound moves.