Bitcoin – It’s a 4th Day in the Green for the Bulls, with $4,000 in Sight

Bitcoin gained 4.33% on Tuesday, following on from a 9.85% rally on Monday, to end the day at $3,780.8.

Monday’s rally had left Bitcoin and the broader market relatively directionless through on Tuesday morning and perhaps unsurprisingly when considering the recent swings, investors having been quick to hit the sell-button in fear of another crypto sell-off.

Monday’s rally was impressive in the fact that Bitcoin managed to avoid a late sell-off, leading to what turned out to be a relatively range bound 1^st half of the day for Bitcoin and the broader market on Tuesday.

On the day, Bitcoin eased back to a late morning intraday low $3,546.9, steering well clear of the first major support level at $3,355.07 before recovering. Bitcoin’s hold onto $3,500 levels through the morning was key to the upward moves seen through the 2^nd half of the day.

Investors had waited for a sell-off and, with one failing to materialize, jumped back in, with  Bitcoin rallying through to a late in the day intraday high $3,799.9 before easing back, the late rally seeing Bitcoin come within range of the first major resistance level at $3,819.87.

It was more spectacular elsewhere, with the likes of Bitcoin Cash ABC making much more ground, but with it had come heavier losses prior, the Tuesday crypto rally leading to Bitcoin’s dominance easing back to 53.9%, the downward bias in dominance signalling the possible start of a bull run for Bitcoin and, more importantly, the broader market.

Interestingly, while there were no major news events to drive the broader market through a second day of sizeable gains, it could well be the knowledge that the two key drivers for the cryptomarket near-term, the Bitcoin ETF decision by the SEC and the G20 unified rules and regulations are both on ice, allowing the crypto bulls some freedom following a particularly bearish run since mid-October. The only real curve ball near-term is the U.S DoJ’s investigation into the 2017 rally, but in reality, this may just give the SEC one more reason to delay any approvals until the G20 rules and regs are rolled out and being enforced, something that we have discussed in a number of articles in recent months.

Bitcoin has once again managed to defy the odds, steering clear of sub-$3,000 levels and the total crypto market cap is a back to $119.30bn, sub-$100bn levels avoided once more.

We may not see a December 2017 run but, when considering it’s a 4^th consecutive day in the green for Bitcoin, the momentum rally could deliver a decent return through the 2^nd half of December to ease some of pain inflicted on crypto investors through the year, with an end of year close out at $4,000 levels certainly painting a better picture than Bitcoin $2,500.

It was 18^th October when Bitcoin last enjoyed a 4 day rally end. Back then, Bitcoin was sitting at $6,700 levels.

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At the time of writing, Bitcoin was down 0.33% to 3,768.2 and, while there’s no rhyme nor reason for a reversal, a pullback through to $3,600 levels could get investors nervous and even more nervous should Bitcoin test the day’s first major support level at $3,618.5.

Holding onto $3,700 levels through the morning will be key, with a move through an early morning high $3,810 bringing the first major resistance level at $3,871.5 and, more importantly, $4,000 levels into play ahead of the weekend.