Bitcoin Up, but for How Long? Sunday’s Have not been Kind of Late

Bitcoin and the cryptos are in positive territory this morning, but there’s plenty of resistance and Bitcoin is struggling to make a move back through to $10,000 levels. If previous weekends are anything to go by, things could get bearish as the day progresses.
Bob Mason
ETH/USD daily chart, February 23, 2018

Saturday was another day of what if’s for the cryptomarket, with an early part of the day rally coming to an early end.

Bitcoin ended the day down 4.46% to $9,682.72, with the major blow for the cryptomarket being Bitcoin giving up $10,000 levels again.

The good news was that major support levels were not tested through the day, but that was about all that investors could take away from what eventually ended in an 11% tumble from Saturday’s $10,540.6 high to the day’s $9,373.48 low, before recovering to $9,600 levels by the end of the day.

Saturday’s break through Bitcoin’s first major support level of $10,358 ultimately led to Bitcoin’s downfall on the day, which led to the rest of the markets following Bitcoin into the red for the day.

The news wires were on the quieter side through the day, with the only negative news hitting the wires being of Toronto-Dominion Bank banning the purchase of cryptocurrencies with credit cards. This isn’t the first bank and won’t be the last to impose such a ban, but it is one of the larger banks of North America and the first Canadian bank to impose the ban.

Canada is considered a crypto friendly, from a regulatory perspective, so TDB’s decision went against the grain, with the Royal Bank of Canada having previously issued a statement, stating that it would continue to permit the purchase of cryptocurrencies with credit cards.

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At the time of writing, Bitcoin was up 0.58% to $9,745.98 against the Dollar, with the start of the day having been a choppy one.

Bitcoin hit an intraday low $9,500 early this morning before recovering, though with the weekend rapidly coming to an end, moves have been far less spectacular than what the cryptocurrencies have been accustomed to.

For the day ahead, Bitcoin will likely struggle to recover through to $10,000 levels that were hit on Saturday morning’s rally. While Bitcoin’s first major resistance level sits at $10,358, we will expect Bitcoin to face selling pressure at $9,819, Bitcoin’s 38.2% FIB Retracement Level, with this morning’s move through the 23.6% FIB Retracement Level of $9,649 complete.

A move through the 38.2% FIB Retracement would support a run through to its first major resistance level, though holding on to $10,000 levels would be a challenge when considering Friday’s Cboe Bitcoin Futures March contract closing price of $9,920.

Bitcoin and the cryptomarket were in positive territory at the time of writing, but with investors cognisant of the weekly sell-offs ahead of the Monday open, today’s highs could well be capped not too far off current levels. If Investors do manage to hold on through to Monday’s open, the cryptomarket would likely see more investors drawn in at the start of the week that support a Bitcoin move back to $11,000 levels.

Elsewhere, Ripple managed to find some support, up more than 2% at the time of writing, with Ethereum up more than 1.5%, while Litecoin continued to lag its peers through the early part of the day.

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