Bitcoin – Investors Still Spooked from the Thursday MeltdownSub-$3,700 support was called upon early in the day to test investor nerves, with Bitcoin needing to make a move early to avoid another sell-off.
Bitcoin fell by 0.36% on Saturday, following a 0.05% gain on Friday, to end the day at $3,702.
A relatively bearish start to the day saw Bitcoin fall from a morning high $3,730 to a mid-day intraday low $3,666.6, coming within range of the first major support level at $3,661.67 before moving back through to $3,700 levels.
Through the 2nd half of the day, Bitcoin called on sub-$3,700 support a number of times to avoid a pullback through to $3,500 levels, while pinned back from any run at $3,800 levels, an intraday high $3,734 coming up short of the day’s first major resistance level at $3,772.87 before easing back.
For the Bitcoin bears, it’s been a fruitful week, with Bitcoin down 11.21% Monday through Saturday, 5 days in the red and Thursday’s 9.07% tumble taking a bite.
The sentiment has been reflected across the broader market, with the total cryptomarket cap down from a Monday high $138.76bn and a week high $138.79bn to $122.23bn by the end of the day on Saturday.
Across the majors, Ethereum was amongst the biggest losers, sliding by 20% through the current week, with IOTA and Monero not far behind with losses of 19% and 18.8%, while Tron remained impressive, up by 1.2% to the end of Saturday, bucking the trend seen across the broader market.
The majors are going to need more than a miracle to recoup the week’s losses, with the bearish sentiment that lingers continuing to pin Bitcoin and the majors back from a breakout from their current ranges, Tron being the only exception among the top 10 cryptos at the start of the year.
At the time of writing, Bitcoin was up by just 0.11% to $3,706.2, with Bitcoin recovering from an early morning fall to $3,674.8 to strike a morning high $3,712.9 before easing back, the day’s major support and resistance levels left untested early on.
For the day ahead, holding onto $3,700 levels through the morning would support a move through the morning high $3,712.9 to bring the day’s first major resistance level at $3,735.13 into play, with the broader market needing to see upward momentum for Bitcoin to take a run at the second major resistance level at $3,768.27 before any pullback, $3,800 levels unlikely to be in play through the day.
Failure to hold onto $3,700 levels through to the afternoon could see Bitcoin slide back through the morning low $3,674.8 to call on support at the first major support level at $3,667.73, with the second major support level at $3,633.47 in pay should the bears take control of the broader market later in the day, sub-$3,600 levels unlikely to be in play barring another crypto meltdown.
Investors will be looking to brush off the current week’s heavy losses but, with the risk of more losses ever present, there will be some caution going into the 3rd week of the year, few needing too much reminding of how the cryptomarket performed at the turn of the year last year…