Bitcoin – Holding onto $3,700 Could be a Challenge as the Majors Hit Reverse

It’s back in the red for Bitcoin and the majors. Bitcoin will need to hold onto $3,700 levels to avoid a possible return to $3,500 levels.
Bob Mason
Crypto is down

Bitcoin was on the move on Thursday, rising by 1.28% to end the day at $3,722.5, off the back of a 0.56% gain on Wednesday. A 2nd consecutive day in the green was the first for Bitcoin since the first 2-days of the year.

A bearish start to the day saw Bitcoin fall to a late morning intraday low $3,606.2, with support at the first major support level at $3,624.03 kicking in to prevent a return to $3,500 levels on the day.

Tracking the broader market through the afternoon, Bitcoin managed to break through to $3,700 levels and strike a late in the day intraday high $3,725 before easing back. In spite of the afternoon rebound, Bitcoin failed to test the day’s first major resistance level at $3,741.53.

For the Bitcoin bulls, avoiding a return to $3,500 levels was key through the day, though the continuing tight ranges could lead to a sell-off as investors become wary of the lack of return when considering the risks associated owithf being exposed to Bitcoin and the broader market.

Elsewhere in the top 10, EOS and Stellar’s Lumen were amongst the front runners on the day, gaining 3.63% and 3.18% respectively, while Ethereum saw the most modest gain, up by just 0.29% on the day, the hard fork delay giving little incentive for investors to jump back in.

For those that have been keeping a close eye on Tron’s TRX, a 0.84% rise on Thursday was insignificant relative to the gains seen since late November’s swing lo and, with the number 9 spot on the market cap board safe for now, some more positive news is going to be needed to revive the Tron rally.

Thursday’s broad based cryptomarket gains failed to add too much value to the total crypto market cap, which ended the day at $122.57bn.

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At the time of writing, Bitcoin was down 0.47% to $3,704.9, with moves through the early morning seeing Bitcoin fall from a start of a day morning high $3,723.9 to a morning low $3,697.0 before recovering to $3,700 levels.

For the day ahead, a hold onto $3,700 levels would support a run at the first major resistance level at $3,762.93, while we can expect Bitcoin to continue to fall short of $3,800 levels in the event of a recovery. The 10th January cryptomarket sell-off was the last time that Bitcoin had managed to touch $3,800 levels and that was while it was on its way down from a morning high $4,143.3 that day.

Failure to hold onto $3,700 levels could signal a possible sell-off, following the recent tight ranges, with the day’s first major support level at $3,644.13 very much in play should sentiment fail to improve through the day.

Whether the bears can deliver sub-$3,600 levels to test the day’s second major support level at $3,565.77 remains to be seen, with red across the board certainly setting the board up nicely for the bears early on in the day.

Across the broader market, Bitcoin ABC SV saw the heaviest losses early on, down 1.25%, with Tron’s TRX and EOS not far behind, with losses of 0.84% and 0.80% respectively.

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