Bitcoin – Stuck in a Rut and Going Nowhere. Can the Bears Take a Bite?It’s a bearish start to the day for Bitcoin. Holding onto $4,000 levels will be key to avoiding a mass crypto sell-off later in the day.
Bitcoin gained 0.45% on Saturday. Following on from an uneventful gain of 0.01% on Saturday, Bitcoin ended the day at $4,063.2.
Recovering from a morning low $4,039.9, Bitcoin rallied to a mid-morning intraday high $4,084.
Bitcoin broke through the first major resistance level at $4,065.57 to come up against the second major resistance level at $4,085.93 before pulling back.
The reversal saw Bitcoin fall to an intraday low $4,028.4. Bitcoin tested the first major support level at $4,029.87 before moving back into positive territory.
While testing the major resistance levels, Bitcoin fell short of $4,100 levels for a 2nd consecutive day.
Across the top 10 cryptos, it was largely skewed towards the positive. Bitcoin Cash ABC and Tron’s TRX led the way on the day with gains of 8.31% and 8.01% respectively. While Litecoin and EOS also made ground, Stellar’s Lumen struggled to end the day with a 0.96% loss.
A broad-based crypto rally through the early hours of the morning provided much-needed support. Holding on was another issue, however, with a number of the majors sliding into the red before support kicked in.
The crypto bulls were out in force through the day, with a number of bullish price calls hitting the news wires.
Influence was rather muted, however, with a number of crypto majors moving within some particularly tight ranges.
While Bitcoin managed to break back through $4,000 levels, attempts of a breakout from $4,100 have failed to date, which has left Bitcoin wedged between strong sub-$4,000 support levels and selling pressure at $4,100 levels.
Ripple’s XRP has succumbed to similar price action in the last week, with $0.31 levels being the new norm.
With the SEC deadline to review the Bitcoin ETFs set for 5th April, less than 2-weeks remaining could get the bulls driving prices northwards. The SEC has been particularly silent in recent weeks, so which way the decision will go remains a mystery.
The big questions will be whether the recent lack of volatility is enough for the SEC. The news wires have been silent on price manipulation and Fidelity has already rolled out custody services…
A missing piece of the jigsaw remains the rules and regs for the cryptomarket, however.
At the time of writing, Bitcoin was down by 0.47% at $4,044.2. Sliding from the start of the day, Bitcoin fell from a morning high $4,063.1 to a low $4,036.2 before finding support. The reversal through the early morning saw Bitcoin come within range of the first major support level at $4,033.07.
Bitcoin fell well short of the first major resistance level at $4,088.67 with the start of the day high $4,063.1.
For the day ahead
A move back through to $4,060 levels would signal a run at the first major resistance level at $4,088.67. Support from the broader market would be needed for Bitcoin to breakthrough to $6,100 levels, however.
In the event of a broad-based crypto rebound, Bitcoin would likely test the second major resistance level at $4,114.13 before any pullback.
Failure to move through to $4,060 could see Bitcoin fall back through the morning low $4,033.07 and first major support level at $4,033.07. Barring an extended crypto sell-off, we would expect Bitcoin to steer clear of sub-$4,000 support levels, however.
The second major support level at $4,002.93 would likely limit the downside in the event of heavier losses on the day.