Bitcoin – Stuck in a New Range. Break Out or Break Down!

It’s another range bound start to the day and it could spell trouble for the bulls. A move through $4,000 is going to be needed to avoid a sell-off.
Bob Mason
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Bitcoin fell by 0.15% on Thursday. Reversing a 0.08% gain from Wednesday, Bitcoin ended the day at $3,894.0.

A relatively bullish morning saw Bitcoin rise from a start of a day morning low $3,891.0 to a morning high $3,956.6 before easing back.

Bitcoin held onto $3,900 levels through to the early afternoon before a pullback to an early afternoon intraday low $3,875.0. Steering clear of the first major support level at $3,796.2, Bitcoin struck an intraday high $3,988.0 before easing back to $3,800 levels.

The afternoon rally saw bitcoin break through the first major resistance level at $3,969.0 before falling back. It was the 4th consecutive day on which Bitcoin failed to touch $4,000 levels.

For the current week, Bitcoin was up 1.63%, Monday through Thursday.

Elsewhere

Across the top 10 cryptos, it was a mixed bag. Binance led the way on the day, rallying by 4.26%. Stellar’s Lumen, Litecoin and Ripple’s XRP also made decent progress. Ethereum closed out the day flat, while Tron’s TRX and EOS saw red alongside Bitcoin and Bitcoin Cash.

In contrast, EOS was the only one of the top 10 to be sitting in the red for the current week. Following some heavy gains of late, EOS was down by 1.16% Monday through Thursday. Leading the pack was Ripple’s XRP, which was up 5.56%, with Litecoin close behind, up by 4.29%.

There were no major news events to provide direction for Bitcoin and the broader market through the day on Thursday. The ongoing speculation over whether Bitcoin has bottomed continued to do its rounds.

For the broader market, the next catalyst remains the SEC’s decision on the review of the VanEck Bitcoin ETF. The decision is due any time now and an approval would certainly provide the bulls with some much-needed support.

For now, Bitcoin has fallen victim to a new tight range. If there is no breakthrough $4,000 to $4,500, there could be another return to $3,200 levels. Tight ranges have rarely provided the bulls with much joy of late…

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At the time of writing, Bitcoin was up by 0.22% to $3,902.5. Another range-bound start to the day saw Bitcoin rise from a morning low $3,893 to a high $3,908.9. The day’s major support and resistance levels were left untested early on.

For the day ahead

A move back through to $3,920 levels would see Bitcoin take a run at the first major resistance level at $3,963.0. With Bitcoin facing plenty of resistance at $4,000, Bitcoin could fall short of $4,000 levels for a 4th consecutive day. Support from the broader-market would be needed for Bitcoin to take a run at the second major resistance level at $4,032 on the day.

Failure to move through to $3,920 levels could see Bitcoin hit reverse later in the day. A fall through the morning low $3,893 would bring the first major support level at $3,850 into play. Barring a broad-based sell-off, Bitcoin would likely remain within its tight ranges through the day.

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