Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Bob Mason

Bitcoin fell by 1.09% on Saturday, reversing a 0.81% rise from Friday, to end the day at $3,911.9.

A bullish start to the day saw Bitcoin break through to $4,000 levels to strike a mid-morning intraday high $4,014.9 before hitting reverse, the day’s first major resistance level at $4,010.57 pinning Bitcoin back from bigger gains on the day.

The morning rally failed to draw in side lined investors ultimately leading to the reversal, with Bitcoin seemingly stuck in another rut, investors not needing too much reminding of the outcome to the October lull that ultimately led to Bitcoin shedding half of its value and raise the prospects of a slide through to sub-$3,000 levels before any bearish trend reversal.

As we have covered in previous articles, a number of market forces continue to support the extended bearish trend formed back at early May’s swing hi $9,999, including a DoJ investigation into the 2017 crypto rally, with any hints of price manipulation likely to give the SEC another reason to defer its decisions on the review of the Bitcoin ETF until the summer.

The only real good news for now is that Bitcoin has managed to steady following a particularly bearish 2018, though whether the bulls can take control and lead Bitcoin back through to $10,000 levels will largely be in the hands of the very governments and regulators that Satoshi Nakamoto looked to free investors from.

While the bearish trend remains intact across the broader market, Bitcoin’s dominance moving back up to 51.1%, a number of crypto majors have managed to buck the trend in recent weeks, with Ethereum in particular seeing substantial gains, up 91.3% from mid-December’s swing low $80.6.

The rebound has seen Ethereum recover its number 2 ranking by market cap, with hopes of a rebound in the ICO market, following the 2nd half of a year lull in 2018, providing much needed support.

Coming in behind Ethereum, but also noteworthy, has been Litecoin’s recovery from its mid-December swing lo $22.18, with Saturday’s rally giving Litecoin a 55.5% gain since mid-December, impressive when comparing to Bitcoin’s 2.7% gain over the same period.

A roll out of Ethereum and Litecoin swaps by crypto exchange OKEx and rising adoption for both cryptos has continued to drive demand, with the moves in the last few weeks delivering some degree of coin differentiation, which is ultimately key to the evolution of the market.

Get Into Cryptocurrency Trading Today

At the time of writing, Bitcoin was up just 0.15% to $3,917.9, with a relatively range bound start to the day seeing a morning high $3,938.4 and morning low $3,890.5 leave the major support and resistance levels untested early on.

For the bulls, a move back through the morning high $3,938.4 would bring the day’s first major resistance level at $3,984.2 and $4,000 levels into play before any pullback, with Saturday’s high $4,014.9 and the second major resistance level at $4,056.5 there to pin Bitcoin back from any attempted breakout to $4,100 levels.

Failure to move back through the morning high by the early afternoon could see Bitcoin pullback into the red, with a fall through the morning low $3,890.5 bringing the first major support level at $3,870.3 into play. For the bears, $3,700 would be the near-term target.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
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.
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.