Bitcoin – The Bears Are Looking for a Way Back to sub-$4,000It’s a sea of red for the majors mid-week. Bitcoin will need to hold onto $4,000 levels to prevent a crypto meltdown later in the day.
Bitcoin gained 0.76% on Tuesday. Following on from a 0.12% rise from Monday, Bitcoin ended the day at $4,104.6.
A bearish morning saw Bitcoin fall to a mid-morning intraday low $4,055.2 before finding support. Steering clear of the first major support level at $4,031.80, Bitcoin rallied to an early afternoon intraday high $4,120. Bitcoin broke through the first major support level at $4,117.80 before easing back.
For the Bitcoin bulls, a hold onto $4,100 levels by the day’s end was a first since 23rd February.
Across the top 10 cryptos, it was a relatively uneventful day for all but one of the crypto majors. Hitting reverse on Tuesday was Stellar’s Lumen, which slid by 3.54% on the day. The heavy losses come off the back of a bullish start to the week. In spite of Tuesday’s pullback, Stellar’s Lumen was still up by 2.47% Monday through Tuesday.
Ahead of Stellar’s Lumen in the early part of the week is Bitcoin Cash ABC, which was up by 3.34% to the end of Tuesday.
In contrast to the front runners, Litecoin and Tron’s TRX saw the heaviest losses in the early part of the week. Litecoin was down by 1.67%, with Tron down by 1.14%. The pair have seen strong support through the early part of this year, in spite of the current week losses.
While Tron may struggle if the wires fail to deliver news of increased adoption, Litecoin could find more support near-term. Litecoin’s halving doesn’t take place until August, so there’s still plenty of time for a breakout from $60 levels.
At the time of writing, Bitcoin was down by 0.58% to $4,080.8. A bearish start to the day saw Bitcoin slide from a morning high $4,118.0 to a low $4,072.7 before hitting reverse. The early pullback saw Bitcoin come within range of the first major support level at $4,066.53. The early morning high saw Bitcoin come up short of the first major resistance level at $4,131.33.
For the day ahead
A move back through to $4,090 levels would signal a move back through to $4,100 levels later in the day. A material shift in sentiment across the broader-market would be needed, however, for Bitcoin to breakout from current levels. A sea of red across the crypto majors would likely see the first major resistance level at $4,131.33 pin Bitcoin back on the day.
In the event of a broad-based crypto rebound, Bitcoin could break through the first major resistance level to test selling pressure at the second major resistance level at $4,158.07 before any pullback.
Failure to move back through to $4,090 levels could lead to heavier losses in the day. A fall through the morning low $4,072.7 would bring the first major support level at $4,066.53 into play. Barring a crypto-meltdown, we would expect Bitcoin to hold onto $4,000 levels through the day.
Time may be running out for the Bitcoin bulls, however. The continued failure to break through to $4,500 levels could become an issue.