Bitcoin – Respite from the Crypto Storm or Finally the Floor?The Bitcoin bulls come out of hiding, providing some much needed support over the last 24-hours, sub-$3,000 avoided for now.
Bitcoin closed out the day flat on Saturday, with just a 0.05% rise, following Friday’s 2.16% fall, to end the day at $3,283.3.
It was a choppy day for Bitcoin, with an early move to a morning intraday high $3,324.2 coming up short of the day’s first major resistance level at $3,376.6 before hitting reverse.
Bitcoin slid through the late morning and early afternoon to an intraday low and new swing lo $3,215.2, coming within range of the first major support level at $3,205.4 before recovering to an afternoon high $3,313.7.
With the negative bias in play through the day, Bitcoin was unable to hold onto $3,300 levels for a 2nd consecutive day, easing back to $3,200 levels by the day’s end.
For the Bitcoin bulls, steering clear of sub-$3,000 levels was key, with Saturday’s late recovery supporting a positive bias at the end of the weekend, crisis seemingly avoided for now.
With the majors in recovery, the total crypto market cap also managed to avoid falling through to sub-$100bn levels, the crypto bulls seeming to come out of hiding through the afternoon.
On the news front, there was very little for investors to go on, leaving price action through the day to draw in side lined investors, Bitcoin’s hold onto $3,200 levels through the day signalling a near-term floor that could ultimately give hope of a sunnier 2019 for Bitcoin and the market.
While we can expect the bulls to begin talking up an end to the crypto storm, we continue to see a roll out of rules and regulations across the major crypto jurisdictions to be the key driver for the market over the next 6-9 months, with an inflow of sticky institutional money also needed to ease the crypto swings seen through much of this year.
At the time of writing, Bitcoin was up 2.33% to $3,360, with Saturday’s afternoon recovery continuing into the early hours of this morning. Bitcoin rallied from a start of a day morning low $3,276.2 to a morning high $3,371.8, breaking through the first major resistance level at $3,333.33 before easing back.
Bitcoin’s gains, while much needed, paled into insignificance relative to the broader market, with some of the majors seeing more than 10% gains in the early hours, Bitcoin Cash SV outgunned Bitcoin Cash ABC with a 14.5% rise at the time of writing, with Litecoin up more than 10%.
For the day ahead, Bitcoin would need to hold above the first major resistance level at $3,333.33 to support a second break out later in the day, a move back through the morning high $3,371.8 likely to see Bitcoin break through the second major resistance level at $3,383.27 to hit $3,400 levels before easing back.
Failure to hold above the first major resistance level could see Bitcoin hit reverse later in the day, a pullback through $3,333.33 likely to bring $3,200 levels back into play before any recovery, the first major support level at $3,224.3 likely to be tested in the event of a pullback.