Bitcoin – It’s Not Getting Any Better for the Bulls

It’s a struggle for the bulls, with $3,500 continuing to be the line in the sand. A mass sell-off has been avoided till now…
Bob Mason
Bitcoin 2
Bitcoin coin on white keyboard

Bitcoin fell by 0.32% on Monday. Following on from a 1.76% slide on Sunday, Bitcoin ended the day at $3,490.5.

It was only the 2nd time that Bitcoin failed to avoid ending the day at sub-$3,500 levels since the December lows,

A relatively choppy day saw Bitcoin strike a late morning intraday high $3,522.7 before hitting reverse. The day’s high came up short of the first major resistance level at $3,555.63.

Sliding through the late morning, Bitcoin fell to an intraday low $3,475.3, before bouncing back to $3,500 levels late in the day. A late sell-off ultimately pulled Bitcoin back to sub-$3,500 levels by the day’s end.

Closing out the day at sub-$3,500 levels may prove significant in the coming days. Bitcoin has failed to breakout to $3,600 levels for 8 consecutive days, whilst visiting sub-$3,500 levels on each of those days. The downward bias is evident and leaves sub-$3,000 levels on the table near-term.

Elsewhere

It was a particularly mixed day for the top 10. Tron’s TRX led the way at the start of the week, rallying by 5.51%. Joining Tron’s TRX were Litecoin and EOS, which saw gains of 2.31% and 0.82% respectively.

While Bitcoin Cash SV and Ethereum were flat on the day, Stellar’s Lumen and Ripple’s XRP saw the heaviest losses. The pair ended the day with 2.38% and 1.38% losses respectively.

Tron’s impressive run on Monday was an impressive one, following last week’s 12.87% slide, but Litecoin continues to be the headline coin. Now ranked at number 6 by market cap, both Bitcoin Cash ABC and EOS will be in Litecoin’s sights in the coming weeks.

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At the time of writing, Bitcoin was up by 0.19% to $3,497.1. Recovering from a morning low $3,475.1, Bitcoin struck a morning high $3,498.6. The day’s major support and resistance levels were left untested early on. Of greater significance could be Bitcoin’s failure to move back through to $3,500 levels.

For the day ahead

Bitcoin will need to avoid sub-$3,490 through the morning to support further gains later in the day. A move through to $3,500 levels would support a run at the first major resistance level at $3,517.03. We would expect Bitcoin to come up short of the second major resistance level at $3,543.57, with Monday’s high $3,522.7 likely to pin Bitcoin back on the day.

Failure to hold onto $3,490 levels could see Bitcoin hit reverse later in the day. A fall through the morning low $3,475.1 would bring the first major support level at $3,469.63 into play. Heavier losses could be on the cards should sentiment deteriorate, with the second major support level at $3,448.77 in play, in the event of a reversal. We would expect Bitcoin to steer clear of sub-$3,400 levels on the day.

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