Bitcoin – Sub-$3,700 Levels Could Test Investor Resilience TodayIt’s back into the red for Bitcoin, with the bears taking an early bite. Litecoin is looking to recover Monday’s losses, but it could get messy.
Bitcoin fell by 1.78% on Monday. Reversing a 0.79% rise from Sunday, Bitcoin ended the day at $3,681.1.
A bearish start to the day saw Bitcoin reverse a late Sunday rally. Falling short of the day’s first major resistance level at $3,780.47, Bitcoin fell through the first major support level at $3,687.97 to a late morning low $3,676.7.
Bearish sentiment across the broader market saw Bitcoin struggle through the early afternoon. Bitcoin fell to a late afternoon intraday low $3,672.0 before steadying.
For the Bitcoin bulls, failing to recover to $3,700 levels by the day’s end will be a concern at the start of the week.
From the top 10 cryptos, Binance bucked the trend across the broader market, rallying by 3.29% to end the day at $9.6551. A 4th consecutive day in the green cemented its number 10 ranking by market cap at the start of the week.
The remainder of the top 10 saw red at the start of the week. Leading the way down was Litecoin, which tumbled by 8.94% on the day.
Stellar’s Lumen and Tron’s TRX were the next worst performers, the pair ending the day with 4.36% and 4.23% losses respectively.
Once again, we’ve seen investors differentiate, with interest in Tron’s TRX continuing to shift to the likes of Binance.
In spite of the broad-based crypto sell-off, the total market cap held at $120bn levels, having fallen from $123bn levels from the start of the day.
There was nothing particularly negative hitting the news wires to drive the start of the day reversal, with some profit taking likely to have inflicted the damage on the day.
At the time of writing, Bitcoin was down by 0.34% to $3,668.7. A bearish start to the day across the broader market saw Bitcoin slide from a morning high $3,682 to a morning low $3,645 before steadying.
The pullback saw Bitcoin call on support at the first major support level at $3,652.07 before moving back through to $3,660 levels.
Elsewhere, there was plenty of red in the early hours, with Tron’s TRX seeing the heaviest losses, down by 1.37%.
Bucking the trend amongst the top 10 were Litecoin, EOS, and Binance. Litecoin was leading the way, up by 2.45%, with Monday’s reversal drawing in investors focused on August’s halving.
For the day ahead
Bitcoin would need to move back through the morning high $3,682 to 3,700 levels to bring the day’s major resistance levels into play. While a shift in sentiment could see Bitcoin take a run at the first major resistance level at $3,730.07, we would expect Bitcoin to come up short of the second major resistance level at $3,779.03.
Barring a major crypto rally, Monday’s high $3,750 and resistance at $3,700 would likely pin Bitcoin back on the day.
Failure to move back through the morning high could see Bitcoin fall back through the first major support level at $3,652.07 to bring the second major support level at $3,623.03 into play. We would expect Bitcoin to steer clear of sub-$3,600 levels on the day.
The partial recovery from the start of the day dip to $3,645 should provide some support through the late morning.