Bitcoin on the Rise, with $11,000 the Target

The highlight of the day for Bitcoin on Wednesday was an $11,064.75 intraday high that was hit in the early part of the morning, moving through its first major resistance level of $10,898. Time spent at $11,000 levels was particularly short, with Bitcoin pulling back to $10,364.78 by the middle part of the day.

After what had been a promising start to the day, Bitcoin ended the day down 2.46%, reversing Tuesday’s 2.34% gain, to end the day at $10,312.33.

The quick sell-off was most certainly attributed to investors locking in profits at $11,000 levels, with the move through to Wednesday’s $11,064.75 high, from Sunday’s $9,260 low giving investors a 20% return.

While the gains may not seem like much, the volatility is certainly a plus for traders looking to day trade, with Bitcoin’s performance continuing to be more attractive than other asset classes, include the global equity markets.

The good news for investors was that Bitcoin was able to hold on to $10,000 levels through the day, with support levels untested, Bitcoin’s intraday low $10,223.41 that came towards the end of the day, sitting above Bitcoin’s first major support level of $10,198.

While investors were quick to lock in profits in the morning, the 2^nd half of the day declines were attributed to negative news hitting the wires of the SEC intensifying its probe into cryptocurrencies and initial coin offerings in the U.S.

It wasn’t all doom and gloom, with the markets fully aware of the probe, but it was a reminder of what’s going on in the background. Something that investors will need to be cognizant of near-term.

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At the time of writing, Bitcoin was up 1.26% to $10,445, with moves through the early part of the day having been within some relatively tight ranges.

For now, neither support nor resistance levels have been tested, with news out of China and the U.S on the regulatory side of things, pinning back the cryptomarkets, which slipped on the news on Wednesday.

Bitcoin’s fall through its 38.2% FIB Retracement level of $10,375 has brought in some interest in the early part of the day, averting a fall through to today’s first major support level of $10,000.

While there was a pullback through Bitcoin’s 23.6% and 38.2% FIB Retracement Levels on Wednesday, the bullish trend will remain intact should Bitcoin move through $10,635 in the early part of the day and have a run at its first major resistance level of $10,844.

Looking at the Cboe Bitcoin Futures March contract, a $275 fall to $10,420 this morning is certainly not going to be in the Bitcoin bulls’ favour, though following yesterday’s moves, we will expect Bitcoin to attempt to break out ahead of the futures markets today.

Elsewhere, there was plenty of green across the board, with Cardano and Stella Lumen the only exceptions amongst the majors, the pair down 2.7% and 3.85% respectively.

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