Bitcoin – Small Gains Early on Suggest a Move is ImminentBitcoin’s in positive territory early on, but holding on may be another story. A run at the day’s resistance levels would ease investor jitters.
Bitcoin fell by 0.39% on Thursday. Following on from a 1.74% fall on Wednesday, Bitcoin ended the day at $3,438.4.
By historical standards, it was a relatively range-bound day. Recovering from a morning low $3,439.7, Bitcoin rose to a late morning intraday high $3,462.3 before hitting reverse.
While managing to move through to $3,460 levels, Bitcoin was unable to break through to $3,500 levels for the first time since mid-December.
The reversal through the second half of the day saw Bitcoin slide to an intraday low $3,417.1 before recovering. Bitcoin steered clear of sub-$3,400 levels and the first major support level at $3,397.8.
The range bound day saw Bitcoin move within a $45 band, the tighter ranges expected following Wednesday’s broad-based crypto sell-off. Lower volumes, attributed to Chinese New Year, ultimately left Bitcoin directionless at sub-$3,500 ranges on the day.
Much will depend upon the moves through the remainder of the week and whether Bitcoin can hold onto $3,400 levels. A pull-back to $3,300 levels ahead of a resumption of normal trading next week could see a more material sell-off ensue.
From the top 10 cryptos, there were just two that joined Bitcoin in the red on the day. Ethereum saw minor losses, with EOS the only other crypto in the top 10 to end the day in the red, with a loss of 0.42%.
Leading the way through the day were Bitcoin Cash SV and Litecoin, which gained 1.57% and 1.14% respectively. A mixed day across the majors left the total crypto market cap at $111bn levels.
For Bitcoin SV, a second day in the green saw Bitcoin Cash SV recover the number 10 spot, by market cap, with Binance Coin taking a big hit on Thursday. A 4.11% slide was the heaviest amongst the top 20 cryptos on the day, reversing a trend-bucking 3.5% rally on Wednesday, which had led to a move into the top 10 ahead of Thursday’s slide.
Binance coin’s gains had come off the back of the launch of its Launchpad platform that will host the FETCH.AI token sale later this month.
At the time of writing, Bitcoin was up by 0.28% to $3,448.0. Recovering from an early morning low $3,425.3, Bitcoin struck a morning high $3,450.2 before easing back. A relatively range-bound start to the day left the major support and resistance levels untested.
For the day ahead
Bitcoin would need to hold onto $3,440 levels through the morning to support a move back through the morning high $3,450.2 and bring the first major resistance level at $3,461.43 into play. We would expect Bitcoin to continue to fall short of $3,500 levels, with the second major resistance level at $3,484.47 likely to pin Bitcoin back on the day.
Failure to hold onto $3,440 levels could see Bitcoin fall back through the morning low $3,425.3 to bring the first major support level at $3,416.23 into play before any recovery. Sub-$3,400 support levels would likely be left untested, barring a major crypto sell-off ahead of the weekend.
It’s a more upbeat morning across the top 10, with only Bitcoin Cash ABC and Bitcoin Cash SV sitting in the red, at the time of writing. The gains across the rest of the pack are minor, however, with EOS leading the way with a 0.45% gain. A reversal could be on the cards should key levels not be hit by the earlier afternoon.