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

By:
Bob Mason
Published: Feb 5, 2019, 04:48 UTC

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...

Bitcoin 2

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.

BTC/USD 05/02/19 Daily Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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