Bitcoin – Sees Green Early, But Holding On is Another Story

Bitcoin sits in positive territory early on, though with the rest of the cryptos in the red, we can expect pressure to build through the morning…
Bob Mason
Bitcoin Crash

Bitcoin slid by 5.25% on Wednesday, reversing Tuesday’s 1.86% gain, to end the day at $3,772.9, the day’s loss a 4th out the last 7 sessions.

A bearish morning saw Bitcoin fall from a start of a day intraday high $4,000.8 to a mid-morning low $3,831, the pullback seeing Bitcoin hold above the day’s first major support level at $3,799.63 early on, with the morning’s high falling well short of the first major resistance level at $4,150.03.

Support through the late morning saw Bitcoin move back through to $3,900 levels, while unable to break back through to $4,000 levels, which ultimately contributed to the negative sentiment felt across the broader market.

An early afternoon sell-off saw Bitcoin fall through the first major support level at $3,799.63 to an intraday low $3,750 before steadying, with Bitcoin managing to steer clear of $3,600 levels and the second major support level at $3,590.43.

While the Bitcoin bulls have been talking up price action for next year and the prospects of fresh highs, the cryptomarket sat firmly in the laps of the bears, with some of the more bearish forecasting sub-$2,000 levels before any recovery.

Having forecasted $2,000 levels, anything sub-$3,000 is going to have some influence on mining profitability, which could see hash rates decline even further that would raise more questions and doubts on the viability of Bitcoin as an alternative to fiat money.

Wednesday’s broad based crypto sell-off has seen the total market cap pullback to $120.9bn, levels not seen since August of last year, which raises the prospects of a fall back to sub-$100bn before any major inflows, with the downward spiral keeping investors holding onto the side lines for now.

On the news front, there was nothing particular damaging to contribute to Wednesday’s reversal, with investors continuing to respond to regulator chatter, the SEC’s delay and apprehension in approving Bitcoin ETFs and the risk of the U.S DoJ finding that price manipulation had in fact contributed to last year’s rally.

Get Into Cryptocurrency Trading Today

At the time of writing, Bitcoin was up 0.57% to $3,794.4, with moves through the early hours seeing Bitcoin rise to an early morning high $3,830 before falling to a low $3,728.5, the moves through the early morning leaving the day’s major support and resistance levels untested.

For the day ahead, a move back through the morning high $3,830 to $3,841 would support a run at $3,900 levels and the day’s first major resistance level at $3,932.47, with sentiment across the broader market needing to improve to support a break back through to $4,000 levels.

Failure to move back through the morning high $3,830 by the early afternoon could see Bitcoin give up the morning’s minor gains, with a fall back through the morning low $3,728.5 bringing $3,600 levels and the day’s first major support level at $3,681.67 into play.

Holding above 25th November’s swing lo $3,657.6 will be key to avoiding a pullback to sub-$3,500 levels that could ultimately deliver sub-$3,000 levels, with Bitcoin having failed to strike $4,000 levels on just one other occasion since prior to last year’s rally, that being back on 27th November.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US