Bitcoin – Here Comes the Pain

Bitcoin’s back in the red, a struggle to hold onto $3,700 levels continuing to question the sustainability of last week’s rally. Binance bucks the trend…
Bob Mason
Bitcoin and the top 10
Bitcoin and Litecoin over dollar banknotes.

Bitcoin rose by 0.79% on Sunday to end the day at $3,747.7. Reversing a 0.16% fall from Saturday, Bitcoin ended the week with a 7.03% gain.

It was another bearish start to the day for Bitcoin and the broader market on Sunday. Bitcoin fell from a start of a day morning high $3,727.6 to a mid-afternoon intraday low $3,661 before recovering.

The pullback saw Bitcoin fall through the first major support level at $3,689.33 to call on support at the second major support level at $3,660.37.

Struggling to hold onto $3,700 levels through the afternoon, a late in the day rally saw Bitcoin rally to a late in the day intraday high $3,753.5. The late rally saw Bitcoin break through the first major resistance level at $3,743.63.

For the Bitcoin bulls, a recovery to $3,700 levels would have been the positive on the day. Falling short of $3,800 levels for a 2nd consecutive day, however, suggests a loss of momentum, which would be considered a negative.

Elsewhere

From the top 10 cryptos, Litecoin wrapped up the week with a 5.2% rally to end the week up 41.5% to head the pack. Not far behind was Binance, which surged by 35.5% in the week to cement its number 10 ranking by market cap, displacing Bitcoin Cash SV.

EOS also managed to make solid gains in the week, a 2.72% rally on Sunday giving EOS a 20.6% gain for the week.

Bucking the trend on Sunday were Tron’s TRX and Stellar’s Lumen. The pair fell by 1.7% and by 0.37% respectively. The poor end to the week left Tron with a 1.74% gain, while Stellar’s Lumen gained just 0.61%.

Another poor showing by Stellar’s Lumen could see Binance take the number 9 spot to then begin targeting Tron’s TRX, which has become a victim of its own success. An impressive rally since November’s swing lo $0.0111 has led to some profit taking, as interest shifts elsewhere. Litecoin’s halving event later in the year likely to have contributed to some of the shift in appetite.

For Binance, it’s all about its Launchpad platform and its hosting of the FETCH.AI token sale later this month. Binance saw red just once in the past 7 days to deliver this week’s solid gains.

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At the time of writing, Bitcoin down by 1.38% to $3,696 A broad-based crypto sell-off weighed early, with Bitcoin sliding from a morning high $3,750 to a low $3,687 before steadying.

The sell-off saw Bitcoin call on support at the first major support level at $3,687.97 in the early hours to limit more material losses.

Bucking the trend in the early hours was Binance. A 2.95% gain at the time of writing, makes Binance the only top 10 cryptos to be sitting in the green at the time of writing.

For the day ahead

A move back through to $3,720 levels would signal a possible 2nd half of a day recovery into the green. Barring a broad-based cryptomarket rebound, however, we would expect Bitcoin to come up short of the first major resistance level at $3,780.47. Sunday’s high $3,753.5 and resistance on the way through to $3,800 levels will likely limit Bitcoin’s upside in the event of a recovery.

Failure to move back through to $3,720 levels will likely see Bitcoin struggle to recover to $3,700 levels. A fall back through the first major support level at $3,687.97 will likely be on the cards should sentiment fail to improve through the day. We would expect the day’s second major support level at $3,628.23 to be left untested on the day, however, barring a broad-based crypto meltdown.

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