Bitcoin – Resistance at $4,000 could be the Bulls’ Undoing

Bitcoin gained 0.81% on Friday, partially reversing a 3.08% slide from Thursday, to end the day at $3,954.9, with the moves through the current week leaving Bitcoin down by just 0.59%, Monday through Friday.

It was a relatively choppy day for Bitcoin and the broader cryptomarket, with Bitcoin rising from a start of a day dip to strike a mid-morning high $3,975.0 before succumbing to selling pressure seen across the broader market.

The reversal saw Bitcoin fall to an early afternoon intraday low $3,850.1 before recovering to strike an intraday high $3,986.0 late in the day.

Through the day, Bitcoin came within range of the first major support level at $3,847.0 to prevent heavier losses, while Bitcoin failed to break through to $4,000 levels to test the first major resistance level at $4,028.9 through the day.

A positive end to the day aptly marked the 10^th anniversary since Bitcoin’s genesis block was mined back in January 2009 by Bitcoin founder Satoshi Nakamoto, though it’s been far from plain sailing, with the 2018 bear run seeing Bitcoin hold onto $3,000 levels for dear life, having hit an all-time high $19,891 back in December of 2017.

Some early investor anxiety through Friday came amid concerns that some major Bitcoin exchanges could be caught out by Proof of Keys Day, where Bitcoin holders had been urged to withdraw Bitcoins held in exchange wallets and deposit them into private wallets.

A lack of news of any major exchange facing insolvency issues through the day would have supported the late recovery seen in Bitcoin and the broader market going into the weekend.

The broad based gains seen across the crypto market saw Bitcoin’s dominance ease back to 50.9%, with the total crypto market cap continuing to hover at around the $130bn mark.

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At the time of writing, Bitcoin was up 1.04% to $3,996.2, with moves through the start of the day seeing Friday’s late recovery continue into the early hours. Bitcoin rose from a start of a day morning low $3,954.8 to a morning high $4,010.4, coming up against the first major resistance level at $4,010.57 before easing back to sub-$4,000 levels.

For the day ahead, a hold onto $3,900 levels through the morning would support another move through to $4,000 levels, with Bitcoin needing plenty of support from the broader market to breakout from the first major resistance level to bring the second major resistance level at $4,066.23 before any pullback.

Failure to hold onto $3,900 levels could see Bitcoin slide through the first major support level at $3,874.67 before any recovery, with sub-$3,800 levels and the second major support level at $3,794.43 in play should Bitcoin and the broader market hit a bear trap later in the day.

It’s a positive start to the day for Bitcoin and the broader market, with the late Friday rally giving the bulls a head start early on, though whether more meaning full gains can be had through the weekend remains to be seen, the bears still in control of this market.