Bitcoin – Hits $4,000 but Holding on is another Story

Bitcoin gives up $4,000 levels early and will need to avoid a pullback to $3,970 levels. With the exception of Stellar’s Lumen, the top 10 are in the red.
Bob Mason
Bitcoin, Ethereum, Litecoin Digital cryptocurrencys on a notebook

Bitcoin rose by 1.95% on Saturday. Reversing a 0.6% fall from Friday, Bitcoin ended the day at $4,017.2. It was only the 2nd visit to $4,000 levels in March and the 1st time Bitcoin was able to hold onto $4,000 since 23rd February.

Bullish through the morning, Bitcoin rose from an intraday low $3,940.5 to a late afternoon intraday high $4,046.2.

The move through to $4,000 levels saw Bitcoin breakthrough the first major resistance level at $4,024.33 before easing back.

For the current week, Saturday’s rally took Bitcoin’s gains for the week to 3.41%, Monday through Saturday.

Elsewhere

Across the top 10 cryptos, it was a sea of green across the majors. Leading the way on the day was EOS, which rallied by 4.48%. Close behind was Stellar’s Lumen, which gained 4.08%.

While EOS was the story of the day, Binance was the story of the week. For the current week, Binance has rallied by 26.2%. The upward momentum reaffirmed the near-term bullish trend formed with last week’s breakout from the 38.22% FIB of $9.5269.

Coming in close behind Binance was Litecoin, which rallied by 20.96% Monday through Saturday. The pair continue to find support, but for altogether different reasons.

For Binance, the support continues to come from the fundraising scheduled on Launchpad. For Litecoin, while increased adoption has been reported, August’s halving event is considered to be the key driver at the turn of the year.

Lagging the broader market on Saturday were Ripple’s XRP, which rose by just 1.88% and Binance, which was up by 1.15%.

For the crypto bulls, Saturday’s broad-based rally was needed to bring a number of the majors into positive territory for the current week. Divergence across the majors has continued into March. Investors have been more selective, with the likes of Binance seeing a material divergence from Bitcoin.

While there were no major news events to provide the upside on the day, Bitcoin’s move through to $4,000 would have contributed.

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At the time of writing, Bitcoin was down by 0.47% to $3,998.5. A relatively bearish start to the day saw Bitcoin fall from a morning high $4,017.2 to a low $3,993.5.

In spite of the pullback to sub-$4,000 levels, the day’s major support and resistance levels were left untested early on.

Elsewhere, it was red across the majority of the top 10 cryptos. Stellar’s Lumen bucked the trend in the early hours, rallying by 5.6% to take a run at $0.10 levels.

For the day ahead

A hold onto $3,990 levels through the morning would support a move back through to $4,000 levels later in the day. A recovery would bring the first major resistance level at $4,064.37 into play before any pullback.

Barring a broad-based crypto rally, we would expect Saturday’s high $4,046.2 and the first major resistance level to pin Bitcoin back from $4,100 levels on the day.

Failure to hold onto $3,990 levels could see Bitcoin take a bigger hit later in the day. A fall through to $3,970 levels would bring the first major support level at $3,952.07 into play. Barring a crypto sell-off, we would expect Bitcoin to steer clear of sub-$3,900 support levels on the day.

In the event of a market sell-off, the second major support level at $3,886.83 would likely come into play before any recovery.

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