Bitcoin – The Bears Jump Back in to Deliver sub-$3,800 Levels

Bitcoin fell by 0.72% on Sunday. Following on from a 0.17% decline on Saturday, Bitcoin ended the day at $3,885.0.

A start of a day intraday high $3,925.0 saw Bitcoin come up short of the first major resistance level at $3,945.03.

Easing back through the morning, Bitcoin fell to an afternoon low $3,870.8 before steadying. While Bitcoin steered clear of the first major support level at $3,859.93, failing to recover to $3,900 levels did the damage.

Bitcoin slid to an end of day intraday low $3,855. The reversal saw Bitcoin fall through the first major support level at $3,859.93.

For the week, a 2^nd consecutive day in the red left Bitcoin with a 1.4% gain, Monday through Sunday.

Elsewhere

Across the top 10 cryptos, it was a mixed bag for the week ending 3^rd March. Binance led the way, with 4 consecutive days in the green delivering a 14.93% gain for the week. It could have been even more had it not been for Sunday’s sell-off.

Close behind were Stellar’s Lumen and Litecoin. The pair gained 9.64% and 9% respectively. Stellar’s Lumen managed to take back the number 8 ranking from Binance, while Litecoin continued to sit behind EOS at number 5. Rankings are based on market cap.

Following some impressive gains in recent weeks, EOS ended the week in the red. The losses were minor relative to some of the majors. Tron’s TRX tumbled by 4.1% through the week, as investors continue to lock in profits. For Ethereum, it was a 1.58 % loss and, more significantly, a return to sub-$130 levels.

There was very little to drive the majors through the weekend. Range bound moves have tended to cause havoc in the cryptomarket. The pullback over the weekend and through this morning reflected investor uneasiness. The SEC’s pending decisions on the Bitcoin ETFs have left the market somewhat jittery. The decision can come at any time now and another decline would certainly be a bearish outcome.

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At the time of writing, Bitcoin was down by 2.07% to $3,804.5. A bullish start to the day saw Bitcoin rise to a morning high $3,911.1 before hitting reverse. Bitcoin fell through the first major support level at $3,851.67 and second major support level at $3,818.33 to a morning low $3,788.3. In spite of a first visit to sub-$3,800 levels since last Tuesday, Bitcoin managed to recovery to $3,800 levels.

For the day ahead

A move back through $3,890 levels would be needed to signal a Bitcoin and broader market rally. In the event of a rebound, we would expect Bitcoin to test the first major resistance level at $3,921.67. Bitcoin would likely come up short of the second major resistance level at $3,958.33 and $4,000 levels, however. The weekend’s high $3,925 would likely pin Bitcoin back on the day, alongside the second major resistance level.

Failure to move through to $3,890 could see fall back to sub-$3,800 levels to bring the third major support level at $3,748.33 into play. We would expect Bitcoin to steer clear of sub-$3,700 levels in the event of a heavier sell-off, however.